The difference between the simple interest the compound interest of Rs.100 in 1 year at the rate of 10% p.a is Rs.1

The different between the simple interest the compound interest of ₹100 in 1 year at the rate of 10% p.a is Rs.1.

Answer : False

Explanation :

Principle (P) = ₹ 100

Rate of interest (R) = 10%

Time (T) = 1 year

Simple interest ( S.I ) = PRT/100

= ( 100×1×10 ) / 100

= 10

Compound interest ( C.I ) = P(100 + R / 100)^T – P

= { 100 * (100 + 10 / 100 )¹ } – 100

= 110 – 100

= ₹ 10

Difference between S.I and C.I = 10-10

= 0