Question

Find out the difference between the compound interest and simple interest
for Rs. 7500 at the rate of 8% per annum for one year. Note that Compound
interest is calculated every 6 months.
​

Answer 1

$\sf{Answer}$

➪The difference between the compound interest and simple interest is 12.

$\sf{Full \: Solution}$

★ Given :-

➙Principal = Rs 7,500

➙Rate = 8 % (yearly)

➙Rate = 4 % (In 6 month)

➙Time = 1 year = 2 (six month)

Simple interest in 1 year

$\sf{= > \frac{p \times r \times t}{100} = > \frac{7500 \times 8 \times 1}{100} = > 600 \: rupees}$

Interest in 1st six month

$\sf{= > \frac{p \times r \times t}{100} = > \frac{7500 \times 4 \times 1}{100} = > 300 \: rupees}$

New Principal amount

$\sf{=> 7,500+300=7,800 Rs}$

Interest in 1st six month

$\sf{= > \frac{7800 \times 4 \times 1}{100} = > 312 \: rupees}$

Compound interest = 300+312= Rs.612

The difference between the compound interest and simple interest = $\bold{612-600=12}$