Question

find the difference b/w the compounds interest and the simple interest on rs 30000 at 7% per annum for three years

Answer 1

First, lets see the compound interest.

The formula

A=P(1+r/100)ⁿ

A=30,000(1+7/100)³

A=30,000*107/100*107*100*107*100

A=3*107*107*107/100

A=₹36,751.29                                                  ...I

Now, CI=A-P

            =36,751.29-30,000

            =₹6,751.29

Now, the simple interest.

Formula-> SI=PRT/100

                    =30,000*7*3/100

                    =6,300                                         ...II

Subtracting II from I, we have

6,751.29-6,300=₹451.29