Question

3. Find the difference between the compound interest and simple interest on a sum of 16,000 for 3 years
if the rate of interest is 2% per annum.​

Answer 1

Answer:

Rs.19

Step-by-step explanation:

Compound Interest = P (1+R/100)ⁿ - P = 16000 (1+2/100)³ - 16000 = 16000 (51/50)³ - 16000 = Rs.16979 - 16000 = Rs.979

Simple Interest = PRT/100 = 16000×2×3/100 = Rs.960

Difference = Rs.979 - 960 = Rs.19