The difference between simple and compound interest on Rs. 5000 at 10% p.a. for 3 years is:_______?
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Answer: E. None of these
Explanation
Calculating the three year simple interest and compound interest yields a specific difference amount. Evaluating the standard three year interest difference formula produces a result of one hundred fifty five. Since one hundred fifty five is absent from options a through d, none of these options is correct. The difference between compound and simple interest over three years includes additional quadratic terms. Manual calculation of three year interest requires careful multiplication of decimal growth factors. Options labeled none of these are valid choices when standard calculated results are omitted.
Financial auditing requires rigorous checking of interest computations to prevent accounting discrepancies. Multiple choice questions occasionally use none of these choices to test meticulous calculation. Understanding standard formula limitations prevents reliance on incorrect preprinted numerical options. Option a suggests one hundred forty five which is ten units lower than the correct calculation. Option b proposes one hundred fifty which misses the exact calculated difference by five units. Option c overestimates the true difference by ten units compared to the mathematical result.
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- Mathematics
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- Mathematics
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