calculate the difference between compound interest and simple interest on rupees 5000 of 2 year at 8% per annum payable yearly
Answers
||✪✪ GIVEN ✪✪||
→ Principal = Rs.5000
→ Time = 2 years .
→ Rate = 8%
|| ✰✰ ANSWER ✰✰ ||
Basic Method :-
→ SI = (P * R * T)/100
Putting values ,
→ SI = (5000*8*2)/100
→ SI = Rs.800
Similarly,
→ CI = Amount - Principal
→ CI = P[ 1 + (R/100)]² - P
→ CI = P[ { 1 + (R/100)}² - 1]
Putting values ,
→ CI = 5000 [ { 1 + (8/100)}² - 1]
→ CI = 5000*[ (100+8/100)² - 1]
→ CI = 5000 *[ {(108)² - 100²}/100² ]
→ CI = 5000 * [ {(108+100)(108-100}/100²]
→ CI = ( 5000 * 208 * 8 ) / (100 * 100)
→ CI = Rs.832 .
Hence,
→ Difference between compound interest and simple interest = 832 - 800 = Rs.32 (Ans.)
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✫✫ Shortcut Trick ✫✫
Difference Between CI and SI for 2 Years is :-
☛ Difference = [ {Principal * (Rate)²} / (100)² ]
we Have Given Now :-
⇒ Time = 2 Years
⇒ Principal = Rs.5000
⇒ Rate = 8% .
Putting values in Our Formula we get :-
☞ D = [ {5000*8²} / (100)² ]
☞ D = ( 5000 * 64 ) / ( 10000)
☞ D = Rs.32
Hence , Difference is Rs.32 .
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Answer:
Difference between compound interest and simple interest 32.
Step-by-step explanation:
If
p = initial amount.
r = interest rate.
t = time.
Simple interest = (p * r * t)/100.
Compound interest = p [ ( 1 + (r / 100)) ^ t - 1 ].
We need to find the difference between compound interest and simple interest on rupees 5000 of 2 year at 8% per annum payable yearly.
Simple interest = (5000 * 8 * 2) / 100 = 800.
Compound interest = 5000 [ ( 1 + (8/100)) ^ 2 - 1 ] = 5000 * 208/100 * 8/100.
= 832.
Difference between compound interest and simple interest = 832 - 800
= 32.
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