Question

Find the difference between Cl(Compounded annually) and si on 2000 for 3 years at the rate of 8% per annum
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Answer 1

Step-by-step explanation:

$compound \: amount = principal \times {(1 + \frac{rate}{100} )}^{time}$

$= 2000 \times {(1 + \frac{8}{100} )}^{3}$

$= 2000 \times {( \frac{27}{25} )}^{3}$

$= 2000 \times \frac{27}{25} \times \frac{27}{25} \times \frac{27}{25}$

$= 2519.24$

Compound interest =2519.24-2000=519.24

$simple \: interest = \frac{principal \times rate \times time}{100}$

$= \frac{2000 \times 8 \times 3}{100} = 20 \times 8 \times 3 = 480$

Their difference=519.24-480=39.24