Question

find the compound interest annually and the simple interest of sum of rs 5000 in year 1 at 10% p.a. Are both types of interest same? write your conclusions​

Answer 1

Answer:

SI = P×T × R

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100

SI =. 5000×1×10

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100

= 500

Answer 2

Answer:

In this case P is not given.

So,P=SI/R*T=5000/1*10=500

P=₹500

Now,CI=PRT/100=500*10*1/100=₹50

•°•Hence,the CI is ₹50

Conclusion-

CI is not equal to SI because CI is compounded annually whereas SI compounded in the time of money transaction