Question

a bank offers to rates of interest on is 10% per annum simple interest while the other is 9.5 % per annum compounded annually which scheme will bring more interest on 64000 for 2 years and by how much​

Answer 1

Step-by-step explanation:

Since, we are given an amount of money as Rs 64000.

We are given two rates and asked to find out the simple interest and compound interest.

Therefore, the given amount will be principal as 64000 rupees.

Now, we have two formulas as;

S.I. = principale×rate×time.......(1)

100

Now we put the values of variables as;

S.I. = 64000×10×2

100

              = 12800 Rupees

Also, we know that;

A = P(1+r/100)²  .........(2)

            = 64000(1+9.75/100)²

   By solving it, we get;

A = 91776.4 Rupees

Compound interest = A - P

  C.I. = 91776.4 - 64000 = 27776.4 Rupees.

Thus, we can see that compound interest in greater than simple interest.