Question

Difference between simple interest and compound interest formula on a principal of 1000000 for 3 years at 4% per annum

Answer 1

hєч mαtє✌✌
hєrє íѕ ur αnѕwєr ✍✍

●INTEREST = Interest is the price paid by a borrower for the use of a lender's money.

TYPE OF INTEREST----- there are 2 type of interest--
●Simple Interest
●Compound Interest

♥Simple Interest = Simple interest is the computed on the principal for the entire period of borrowing.
Formula -----
I = Pit
A = P + I
I = A - P

here
I = Amount of Interest
P = principal ( initial value of an investment)
A = Accumulated amount ( Final value of an investment)
i = Annual interest rate in decimal
t = time in years

♥Compound Interest = compound interest as the interest that accrues when earnings for each specified period of time added to the principal thus increasing the principal base on which subsequent interest is compound.

Formula -
A = p (1 + i)^n
where,
i = Annual rate of interest
n = Number of conversion period per year
INTEREST = An - P
or
= P ( 1 + i)^n - P

Let, move to ur Question -----

ɢɪᴠᴇɴ -----
ᴩ = ₹ 10,00,000
ʀ = 4%
n = 3 years

here I'm using this formula

ᴅɪꜰꜰᴇʀᴇɴᴄᴇ = ᴩr^2 /100

= ₹ 10,00,000 ( 4)^2 /100
= ₹10,00,000 × 16 /100
= ₹ 1,60,000

hσpє ít hєlpѕ u α lσt
fєєl frєє tσ αѕk αnч quєrч ❤❤