Civil Service Exam Reviewer · Simple Interest and Profit/Loss · hard
What is the difference between the compound interest (compounded annually) and the simple interest on ₱117,000 at 5% for 2 years?
- ₱292.50
- ₱5,850
- ₱585
- ₱11,700
Answer
A. ₱292.50
Solution
CI − SI for 2 years = P(r)² = ₱117,000 × (0.05)² = ₱292.50.
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