Question

Find the difference between compound interest and simple interest on Rs.12,000and in 1and half years at 10percent p.a.​

Answer 1

P = ₹1200

R = 10%

T = 1 year

S.I = P x R x T /100 = 1200 x 10 x 1 / 100 = ₹120

P= Rs. 1200,r=5% per half year, n=2 half year

C.I = ₹$(1200( {1 + \frac{5}{100} })^{2} - 1200)$

= ₹1323-1200 = ₹123

Required difference = ₹123 - ₹120 = ₹3