The difference between simple interest and compound interest on Rs.1200 for one year at 10% per annum reckoned half-yearly is :
Choose the most appropriate option.
A) rs . 2.50 B) rs . 3 C) rs . 3.75 D) rs . 4 E) rs . 5

Rationale: s . i = ( 1000 * 10 * 4 ) / 100 = rs . 400 c . i = 1200 * 1 + 5 / 100 ) 2 – 1200 = 123 . difference = rs . ( 123 - 120 ) = rs . 3 answer : b
Answer: B