Question

Find the difference between compound interest
and simple interest on 8,000 in 2 years and
at 5 per annum​

Answer 1

Answer:

Step-by-step explanation:

P=Rs.8000,T=2 years,R=5%

We know that,

SI=  

100

P×R×T

SI=  100

8000×5×2

SI=Rs.800

We know that,

A=CI+P=P(1+  100 R)  T

CI+8000=8000(1+  100 5 )  2

 CI+8000=8000(1+  20 1  )  2

CI+8000=8000(  20 21  )  2

 CI+8000=8820

CI=Rs.820

Therefore, the required difference

CI−SI=820−800

=Rs.20