Question

Find the difference between C.I and S.I on 5000 for 1 year at 2% p.a, if the interest is
compounded half yearly​

Answer 1

Answer:

Rs 0.5

Step-by-step explanation:

Principal money= Rs 5000

Interest=2%=0.02

Time=1 year.

Simple interest for 1 year=

(5000×2×1) /100=Rs 100.

If interest is compounded half yearly,

Compound interest after one year=

=5000(1+(0.02/2)) ^(2×1) -5000

=5000(1.01) ^2-5000

=100.5

Therefore the difference between the two interest is (100.5-100) =0.5

Answer 2

Answer:

The difference between C.I and S.I is 0.5.

Step-by-step explanation:

Given : 5000 for 1 year at 2% p.a, if the interest is  compounded half yearly​.

To find : The difference between C.I and S.I ?

Solution :              

The principal is P=Rs.5000

Rate is R=2%=0.02

Compounded half-yearly $R=\frac{0.02}{2}=0.01$

Time is T=1 year

Compounded half-yearly $T=1\times 2=2$

The simple interest formula is given by,

$I=P\times R\times T$

$I=5000\times 0.01\times 2$

$I=100$

The simple interest is I=Rs.100.

The compound interest formula is given by,

$A=P(1+R)^T$

$A=5000(1+0.01)^2$

$A=5000(1.01)^2$

$A=5000\times 1.0201$

$A=5100.5$

Compound interest = Amount - Principal

Compound interest = Rs.5100.5 - Rs.5000

Compound interest = Rs.100.5

The compound interest is Rs.100.5.

The difference between compound interest and simple interest is

$D=CI-SI$

$D=100.5-100$

$D=0.5$

The difference between C.I and S.I is 0.5.