Question

Find the difference between compound
interest and simple interest on 12,500
at 12% for 3 years.​

Answer 1

Answer:

So, simple interest =( P×R×T)/100

= (12500×12×3)/100

= 4500

and, amount= p(1+r/100)t

= 12500( 1+12/100)³

= 12500(112/100)³

= 12500(1404928/100000)

= 12500×1.404928

= 17561.6

so, C.I = A-P = 17561.6 - 12500

= 5061.6

therefore, difference of simple interest and compound interest = 5061.6 - 4500

= 561.6 ans