find the compound interest on Rs. 2000 for three years at 10% per annum. also find the difference between C.I. and S.I. for that period.
Answers
1)Compound Interest=Rs.662
2)Difference between the CI and the SI=Rs.62
Explanation:
Given:-
The amount is 2000 for three years per 10 annum
To find:-
1)find the compound interest on Rs. 2000 for three years at 10% per annum.
2)find the difference between C.I. and S.I. for that period.
Solution:-
Principle (P)=Rs. 2000
Time(T) =3 years
Rate of interest(R)=10%
1)Simple Interest (I)=PTR/100
=>I=2000×3×10/100
=>I=200×3
=>I=Rs. 600
Compound interest:
Amount =P[(1+(R/100)]^n
Here , P=2000,R=10% ,n=3
=>A=2000[{1+(10/100)}]³
=>A=2000[{1+(1/10)}]³
=>A=2000×[(10+1)/100]³
=>A=2000×(11/10)³
=>A=2000×11×11×11×1000
=>A=2×11×11×11
=>A=Rs. 2662
We know that
Amount=Principle+Interest
=>Interest=A-P
=>CI=2662-2000
=>Compound interest=Rs.662
Now the difference between CI and SI
=>662-600
=>Rs. 62
Answer:
1)Compound Interest=Rs.662
2)Difference between CI and SI=Rs.62
Explanation:
Simple Interest - Principle * Rate of = interest time /100 *
Simple Interest for 3 Years = 2000 * 10 *
3/100 Rs 600
Compound Interest = P(1+r/100n)nt - P
Compound Interest = 2000(1 + 10/100)³ - 2000
Compound Interest = 2000(1 + 0.1)³ -
2000
Compound Interest = 2000(1.1)³-2000
Compound Interest = 2000* 1.331 -
2000
Compound Interest = 2000 (1.331 -1)
Compound Interest = 2000 (0.331)
Compound Interest = 662
Difference between compound & Simple interest
= 662-600
= 62 Rs