Question

find difference between compound interest and simple interest on rupees 12000 and in one and half year at 10 percent p.a. compounded yearly

Answer 1

p=12000
r=10%
t=1.5yrs=3/2yrs
For SI,
SI=p*r*t/100
(12000*10*3/2)/100
=1800
For CI,
Interest for 6months=(12000*10*1/2)/100
=600
Principal for next 6months=(12000+600)
=12600
Interest for next 6months=(12600*10*1/2)/100
=630
Principal for next 6months=(12600+630)
=13230
Interest for next 6months=(13230*10*1/2)/100
=661.50
Total CI=(600+630+661.50)
=1891.50
Difference=1891.50-1800
=91.50