Question

calculate the difference between the simple interest and the compound interest on rupees 4000 at 2 years at 8% per annum compounded yearly ​

Answer 1

Answer:

p=4000

t=n=2years

r=8%per annum

simple interest =ptr÷100

400×2×8÷100

=4×2×8

64

simple interest =64

n

compound interest=p (1+r÷100)

2

400 (1+8÷100)

2

400 (1+12.5)

400 × 1+25

400×26

10400

compound interest=10400

compound interest -simple interest

10400-64

10336

Answer 2

Answer with the method on how to do:

P=4000

R=8%

T=2yrs

SI=4000×8×2÷100

That is equal to 640...

Again:

P=4000

R=8%

I=4000×1×8÷100

That is equal to 320....

Therefore A=4320

Again:

P=4320

I=4320×8×1÷100

That is equal to 345.60

Therefore,

CI=320+345.60=665.60

&

Difference=665.60-640=25.60!!