Question

calculate the difference between the simple and the compound interest on a sum of ₹9, 500 at a rate of 11%per annum for 2 year​

Answer 1

Answer:

114.95

Step-by-step explanation:

Simple Interest

$I = \frac{PRT}{100}$

$∴I = \frac{9500 \times 11 \times 2}{100}$

$∴I = (95 \times 11 \times 2) = 2090$

Compound Interest

$I = P {(1 + \frac{ R}{100})}^{n} - P$

$I = 9500 {(1 + \frac{11}{100}) }^{2} - 9500$

$I = (9500 \times \frac{12321}{10000}) - 9500$

$I = (11,704.95 - 9500) = 2204.95$

Difference

Compound Interest = 2204.95

Simple Interest = 2090

∴ Difference = (2204.95–2090) = 114.95 (ANS)

Hope this helped you :)