Question

3. Find the difference between the compound interest (compounded annually) and the simple
interest on a sum of 5,000 for 3 years at 4% per annum.​

Answer 1

Answer:

Principal (p) = Rs. 5000Rate (R) = 9% p.a.Time (n) = 2 years∴ S.I=PRT100=5000×9×2100=Rs. 900Now amount at C.I = P(1+R100)n=Rs.5000(1+9100)2= Rs. 5000×109100×109100= Rs. 118812=Rs. 5940.50∴ C.I = A−P = Rs. 5940.50−Rs. 5000= Rs. 5940.50−5000=Rs. 940.50∴ Difference between C.I. and S.I= Rs. 940.50−Rs. 900=Rs. 40.50