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 ₱174,000 at 12% for 2 years?
- ₱2,505.60
- ₱20,880
- ₱5,011.20
- ₱41,760
Answer
A. ₱2,505.60
Solution
CI − SI for 2 years = P(r)² = ₱174,000 × (0.12)² = ₱2,505.60.
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