Question

find the difference between cl and si on 350000 for 2 years at 13percent per annum.

Answer 1

principal [p]= Rs 350000

time [n]= 2 years  

Rate [r]= 13 % per annum.

CI =P (1 + r/100) ^(n) - P    [formula of compound interest ]

CI =350000 (1 + 13/100) ^(2) - 350000

CI =350000 (1 13/100) ^(2) - 350000

CI =350000 (1 13/100) (1 13/100) - 350000

CI =35 (1 13 * 1 13) - 350000

CI = 446915 -- 350000  =RS  96915

Now

SI = [ p * t * r ] /100

SI = [ 350000 * 2 * 13 ] /100

SI = [ 3500 * 2 * 13 ]   = RS 91000

∴ difference between CI and SI = [ RS  96915 - RS 91000  ] =  RS 5915  ANS