Question

calculatethe difference between the S.I and C.I ON 4000in 2 years at 8% per annum compunded yearly using formula

Answer 1

Answer:

For ,

N=2years

R=8 %

P=Rs4,000

We have S.I.=

100

PNR

​

=

100

4,000×2×8

​

=Rs640

And on interest being compounded for 2 years and R=8 %, Amount=P(1+

100

R

​

)

N

=4,000×(1+

100

8

​

)

2

=4,000×1.08×1.08=Rs4,665.60

So, C.I.=A−P=4,665.60−4,000=665.60

And required difference C.I.=S.I.=665.60=640=Rs25.60

Step-by-step explanation: