Question

4
Q.5 Solve any one of the following.
1) Find the difference between simple interst and compound
interest on Rs. 6250 in 2 years at 4 p.c.p.a.​

Answer 1

Given :

• Principal (P) = Rs.6250

• Rate (R) = 4%

• Time (n) = 2 years

To Find :

• Difference between simple interst and compound interest

Solution :

✬ Here in the Question we are given Principal, rate of intrerst and time and we have to find difference in Simple interest and compound interest. So, Firstly we will find Simple interest That is P × R × T/100 By putting values in this Formula we will Get simple interest and Compound Interest Formula is P (1 + R/100)ⁿ - P and then we can easily find the difference in simple interest and compound interest

Let's Solve..!

→ S.I = P × R × T/100

→ S.I = 6250 × 2 × 4/100

→ S.I = 125 × 4

→ S.I = Rs.500

Now, Let's Find Compound interest

→ C.I = P (1 + R/100)ⁿ - P

→ C.I 6250 (1 + 4/100)² - 6250

→ 6250 × 104/100 × 104/100 - 6250

→ 67600000/10000 - 6250

→ 6760 - 6250

→ C.I = Rs.510

Difference Between S.I and C.I

→ Difference = S.I - C.I

→ Difference = (510 - 500)

→ Difference = Rs.10

______________

Hence, Difference between Simple interest and compound interest is Rs.10

______________

Answer 2

Given :

• Principal (P) = Rs 6250
• Rate (R) = 4% p.a
• Time (T , n ) = 2 years

To Find :

• The difference between simple interest and compound interest

Formulas :

• A= P [1 + R / 100]^n
• CI = A - P
• SI = P × R × T / 100

where ,

• P denotes Principal
• R denotes Rate
• n denotes Time
• T denotes Time
• A denotes Amount
• CI denotes Compound Interest
• SI denotes Simple Interest

Solution :

✰ In this question, we have to find difference between simple interest and compound interest . So Firstly we will find the simple interest and compound interest separately then we will substract them to find the difference.

⟹ Simple Interest = P × R × T / 100

⟹ Simple Interest = 6250 × 4 × 2 / 100

⟹ Simple Interest = 625 × 4 × 2/10

⟹ Simple Interest = 625 × 8/10

⟹ Simple Interest = 5000/10

⟹ Simple Interest = Rs 500

Now,

⟼ Amount = P [1 + R / 100]^n

⟼ Amount = 6250 [1 + 4 / 100]²

⟼ Amount = 6250 [104 / 100]²

⟼ Amount = 6250 × 104/100 × 104/100

⟼ Amount = 625 × 104/10 × 104/100

⟼ Amount = 625 × 10,816/1000

⟼ Amount = 6760000/1000

⟼ Amount = Rs 6760

And,

⟼ CI = Amount - Principal

⟼ CI = 6760 - 6250

⟼ Compound Interest = Rs 510

Finding the difference :

➟ Compound Interest - Simple Interest

➟ 510 - 500

➟ Rs 10

Thus Difference between Compound Interest and Simple Interest is Rs 10

________________