Find the difference between compound interest and a simple interest
for ₹2000 at 12% for 2 years.
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Step-by-step explanation:
Principal sum P=Rs.2000
Time period (t)=3 years
Rate of interest (R)=8% per annum
As we know that,
S.I.=
100
P×R×t
⇒S.I.=
100
2000×3×8
=Rs.480
Also,
A=P(1+
100
R
)
t
A=2000(1+
100
8
)
3
⇒A=2000×(
25
27
)
3
⇒A=Rs.2519.424
Therefore,
C.I.=A−P
⇒C.I.=2519.424−2000=Rs.519.424
Now,
Difference between compound interest and simple interest =519.424−480=Rs.39.424
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