The difference between simple and compound interest on Rs. 1200 for one year at 10% per annum reckoned half-yearly is?
Choose the correct choice from the following answers:
A) rs . 7 B) rs . 3 C) rs . 8 D) rs . 1 E) rs . 4

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