Question

Difference of s.i and c.i for two years on a certain amount of money at 4 percent is 160

Answer 1

Explanation:

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Quantitative Aptitude > Simple Interest and Compound Interest > Difference Between CI and SI

Difference Between CI and SI

Compound and simple interest questions are common in the exams. There are always 3-4 questions appearing from this topic. This topic is very vast and that is why we have decided to cover it in parts and today we are going to discuss the difference between simple interest and compound interest.

Difference Between the Compound and Simple Interest

Sometimes you are given a situation and you have the option of repaying more it through compound interest or through simple interest. Obviously, you will choose simple interest because it is a cheaper option. Also, in compound interest, you are asked to pay the principal amount by levying interest on interest. But you would still need to determine the difference between the compound and simple interest. If the difference asked is for either two or three years than you can easily solve it through the formulas. Here are the formulas to the calculated difference in interests.