Question

Find the compound interest and simple interest in ₹ 5000 for two years at 5% per Annie

Answer 1

Using the formula PRT÷100, we get

5000×5×1÷100

After simplification,

50×5

250 rupees.

this is the Simple interest. you can find the amount by adding the simple interest to the principle.

Now, compound interest....

Using P(1+R÷100)ⁿ, we get

5000(1+5÷100)¹

On further simplification, we get

5250/- (We always get the total amount for Compound interest)

so,

5250 ⁻ 5000

250/- (this is the compound interest)