Question

find the difference between compound interest and simple interest on rs 45000 at 12% p. a. for 5 years

Answer 1

This is ur answer hope it will help u

Answer 2

Answer:

7305.37 Rs.

Step-by-step explanation:

According to the question,

Principal Amount, P = 45,000 Rs.

Rate of interest, r = 12% per annum

Time, t = 5 years

Now,

According to the formula of Simple Interest, S.I., we can say that,

$SI=\frac{PRT}{100}\\SI=\frac{45000\times 12\times 5}{100}\\SI=27000\,Rs.$

Also,

From the formula of Compound Interest, CI, we can say that,

$CI=P(1+\frac{r}{100})^{t}-P$

So,

$CI=P(1+\frac{r}{100})^{t}-P\\CI=45000(1+\frac{12}{100})^{5}-45000\\CI=45000(1.12)^{5}-45000\\CI=79305.37-45000\\CI=34305.37\,Rs.$

So,

Difference of Ci and SI, is given by,

CI - SI = 34305.37 - 27000

CI - SI = 7305.37 Rs.