Question

Find the difference between compound interest and simple interest on sum of Rs 5000 for 2 years at 8% per annum payable yearly.

Answer 1

Step-by-step explanation:

$5000 \times 2 \times 8 \div 100 \\ 50 \times 2 \times 8 \\ 800 \: is \: simple \: interest \\a = 5800 \\ 5000 \times 1 \times 8 \div 100 \\ 400 \: for \: frist \: year \: \\ \\a = 5000 + 400 = 5400 \\ 5400 \times 1 \times 8 \div 100 \\ 432 \\ a = 5400 + 432 \\ 5832 \\ difference \: = 5832 - 5800 \\ 32$