Question

a sum of ₹18,000 is invested for the period of 18 months at an interest of 10%p.a. Find the difference between simple and compound interest if interest is compounded half-yearly.




pls give right answer it's very important ​

Answer 1

Answer:

P = 18,000, r = 10% and t = 2 years, then

A = P (1 + r/100)2

A = 18,000 (1 + 10/100)2 = 18,000 × (11/10) × (11/10) = 21,780

So, Compound interest for 3rd year = 21780 × (10/100) = 2178

Amount will be after 3 year = 21780 + 2178 = 23958

So, compound interest for 4th year = 22958 × (10/100) = 2395.8

So, Difference of compound interest for 3rd year and 4th year = 2395.8 – 2178 = 217.8

Answer= 217.8