bhaskar deposited rupees 10000 at 7% per annum in a fixed deposit scheme for two years and the nick deposited rupees 8000 at 8% per annum for 3 years the interest in each case is compounded annually who will get more compound interest how much more
Answers
Solution :-
Case 1
Bhaskar deposited = Rs10000
Rate of interest = 7%
Time = 2 years
As we know that,
A = P ( 1 + R/100)^2
A = 10000( 1 + 7/100)^2
A = 10000( 107/100)^2
A = 10000 * 107/100 * 107/100
A = 107 * 107
A = Rs 11,449
Now,
CI = Amount - Principal
CI = 11449 - 10000
CI = Rs 1,449
Case 2
Nick deposited = Rs 8000
Rate of interest = 8%
Time = 3 years
As we know that,
A = P( 1 + R/100)^n
A = 8000 ( 1 + 8/100)^3
A = 8000 ( 108/100)^3
A = 8000 * 108/100 * 108/100 * 108/100
A = 8 * 108 * 108/10 * 108/100
A = 10077.69
Now,
CI = A - P
CI = 10077.69 - 8000
CI = 2077.69
Comparing the CI of case 1 and case 2
2077.69 - 1449 = 628.69
Hence, The case 2 CI is more than Case 1 CI by Rs628.69 
Solution :-
Case 1
Bhaskar deposited = Rs10000
Rate of interest = 7%
Time = 2 years
As we know that,
A = P ( 1 + R/100)^2
A = 10000( 1 + 7/100)^2
A = 10000( 107/100)^2
A = 10000 * 107/100 * 107/100
A = 107 * 107
A = Rs 11,449
Now,
CI = Amount - Principal
CI = 11449 - 10000
CI = Rs 1,449
Case 2
Nick deposited = Rs 8000
Rate of interest = 8%
Time = 3 years
As we know that,
A = P( 1 + R/100)^n
A = 8000 ( 1 + 8/100)^3
A = 8000 ( 108/100)^3
A = 8000 * 108/100 * 108/100 * 108/100
A = 8 * 108 * 108/10 * 108/100
A = 10077.69
Now,
CI = A - P
CI = 10077.69 - 8000
CI = 2077.69
Comparing the CI of case 1 and case 2
2077.69 - 1449 = 628.69
•°• The case 2 CI is more than Case 1 CI by Rs628.69