1.  The difference between simple interest and compound interest on ₹ 1200 for one year at 10% per annum reckoned half-yearly is:
A. ₹ 2.50
B. ₹ 3
C. ₹ 3.75
D. ₹ 4
E. None of these

Answer: Option B

Explanation:

S.I. = ₹ 1200 x 10 x 1 = ₹ 120.
100

C.I. = Rs. 1200 x 1 + 5 2 - 1200 = ₹ 123.
100

∴ Difference = ₹ (123 - 120) = ₹ 3.