Question

Calculate the difference between the compound interest and simple interest on Rs 20,000 in 2 years at 8% per annum

Answer 1

Simple interest;

P=20000
T=2yrs
R=8%
I=PTR/100
I=20000×2×8/100
I=3200Rs

compound interest;


compound interest is done in two ways that is calculating with the help of the compound interest formula and another way is using simple interest formula.easiest way is simple interest formula.

let's do with the help of simple interest formula ;

interest of 1st year;

P=20000
T=1
R=8
I=PTR/100
I=20000×1×8/100
I=1600Rs
amount =p+I
=20000+1600
=Rs 21600

interest of 2nd year;
P=21600
T=1
R=8
I=PTR/100
I=21600×1×8/100
=1728
amount=p+i
=21600+1728
=23,328Rs
total interest=23,328-20,000
=3328Rs

difference between the interest of simple and compound is
compound interest =3328
simple interest =3200
difference =3328 - 3200
=128Rs

hope you understood the answer and please mark me brainliest

Answer 2

I hope this is helpful to you