1. Calculate the difference between the simple
interest and the compound interest on 4,000
in 2 years at 8% per annum compounded yearly.
Answers
Answered by
1
Answer:
25.6
Step-by-step explanation:
Simple Interest formula : P*R*T / 100
Therefore Simple Interest = 4000*2*8/100
= 640
Compound Interest Formula : A = P*( 1 + R/100) ^ T
Compound Interest : A - P
Therefore A = 4000*(1+8/100)^2
A = 4665.6
Compound Interest = 4665.6 - 4000 => 665.6
Difference = 665.6 - 640 => 25.6
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