Question

8. Find the difference between CI
(compounded annually) and ST on 2000
for 3 years at the rate of 8% per annum

Answer 1

Answer:

Step-by-step explanation:

Ci -si=p(1+r/100)^t

Ci-si=2000(1+8/100)^3

Ci-si=2000×(108×108×108)/100000

Answer 2

(Compound Interest - Simple Interest) can be determined by the equation,

$\boxed{\bold{CI-SI =P(1+\frac{r}{100})^t}}$

$\implies{\bold{CI-SI=2000(1+\frac{8}{100})^3}$

$\implies\bold{CI-SI=2000(\frac{108}{100})^3}$

$\implies\bold{CI-SI=2000\times\frac{108}{100}\times\frac{108}{100}\times\frac{108}{100}}$

$\implies\bold{CI-SI=\frac{419904000}{1000000}}$

$\boxed{\therefore\bold{CI-SI=419904}}$