Question

1. Calculate the difference between the simple
interest and the compound interest on 4,000
in 2 years at 8% per annum compounded yearly.​

Answer 1

C.I. = Rupees 4665.60

S.I. = Rupees 640

Difference = Rupees 4025.60

Answer 2

Answer:

$25.60

Step-by-step explanation:

Simple interest:

I = Prt

P = $4,000 , r = 8% = 0.08 , t = 2 years

I = 4,000 × 0.08 × 2 = $640.00

Compound interest:

First year compounding time annual. 4,000 × 0.08 = 320.00

Second year compounding time annual. 4,320 × 0.08 = 345.60

$320.00 + $345.60 = $665.60

$(665.60 - 640.00) = $25.60