Question

Calculate the difference between the simple interest and the compound interest on R 4,000 in 2 years at 8 % per annum compounded yearly.

Please Solve it. I will grant 20 points.
Please give full solution.​

Answer 1

$\underline\bold{SOLUTIONS\: :}$

GIVEN: PRINCIPAL=4000

INTEREST=8%

TIME=2years.

Let's find the compound interest first:

CI=P(1+R/100)^yrs.-P

CI=4000(1+8/100)^2 -P

CI=4000(1+2/25)^2 -4000

CI=4000(25+2/25)^2-4000

CI=4000(27/25)^2 -4000

CI=4,665.6-4000

CI=665.6

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Now Simple interest wiil be

SI=P×R×T/100

SI=4000×8×2/100

SI=40×8×2

SI=320×2

SI=640

Now their differences is =CI-SI

=665.6-640

=25.6

So, their differences is 25.6

Answer 2

Here is your answer ☺️☺️❤️❤️

25.6

Hope this helps you ☺️☺️❤️❤️