Question

Find the difference between C.I. and S. I. on Rs 32,000 at 12%p.a. for 3 years?

Answer 1

hello Frnd

Given as

Principal = 32000
Rate = 12%
Time = 3 yrs

SIMPLE INTEREST

as we know
SiMple interest = P × R × T

= 32000 × 12/100 × 3
= 11520

Now Compound Interest

$amount = P(1 + R \div 100)^{n} \\ = 32000(1 + 12 \div 100)^{3} \\ = 32000(1.404) \\ = 44928$
As we know

Compound Interest = Amount - Principal
= 44928 - 32000
= 12928

Now Difference between Compound Interest and Simple Interest

Difference = C I - S I

= 12928 - 11520
= ₹ 1408

hope it helps
#jerri

Answer 2

P = 32000
R = 12%p.a.
T = 3 yrs
SI = PxRxT
= 32000 x 12/100 x 3
= 11520.
Compound Interest :
A = P(1 + R/100)n
= 32000(1 + 12/100)3
= 32000 x 112/100 x 112/100 x 112/100
= 44928
CI = A - P
= Rs (44928 - 32000)
= Rs 12928
Difference between CI and SI
= Rs (12928 - 11520)
= Rs 1408
*Hope it would help you.