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 ₱27,000 at 8% for 2 years?
- ₱2,160
- ₱345.60
- ₱4,320
- ₱172.80
Answer
D. ₱172.80
Solution
CI − SI for 2 years = P(r)² = ₱27,000 × (0.08)² = ₱172.80.
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