✪ Choose the correct option.
As per scheme a car loan of Rs. 4 lakh at 12.5 p.c.p. rate of simple interest can be borrowed on a repayment term of lump sum amount at the end of 3 years.
As per scheme (b), the amount can be repaid at the end of 2 years, but compound interest (compounded annually) would be charged at the same rate. What would be the difference in amount of interest between the two schemes?