Question

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Find the difference between CI and SI on 2500 for 2 years at 4% p.a. compound
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Answer 1

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Answer 2

Answer:

4

Step-by-step explanation:

Note:

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

SI = (2500×2×4)/100

= 20000/100

= 200

A = 2500(1+4/100)^2

= 2500×(1.04)^2

= 2500×1.0816

= 2704

CI = 2704-2500

= 204

difference = CI - SI

= 204-200

= 4