Question

6. What is the difference between the simple interest and compound interest payable on a principal of 1250 in 2 years at the rate of 10 p.c.p.a.?​

Answer 1

Given :-

• Principal = P = Rs.1250 .
• Time = 2 years.
• Rate = R = 10 % per annum.

To Find :-

• The difference between the simple interest and compound interest ?

Solution :-

we know that, when time is 2 years and rate is at per annum.

• Difference between CI and SI = (P * R²) / (100)²

putting given value we get,

→ Difference between CI and SI = (1250 * 10²) / (100)²

→ Difference between CI and SI = (1250 * 100) / 10000

→ Difference between CI and SI = (1250 / 100)

→ Difference between CI and SI = Rs.12.5 (Ans.)

Hence , The difference between the simple interest and compound interest in 2 years will be Rs.12.5 .

Learn more :-

CI in 2yr is Rs. 1600 and in 3 yrs it will be Rs. 1700. Find the rate of interest.

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