Question

find the difference between compound interest and simple interest on a sum of rs64000 at the rate of 20% compounded semi annually for 1 1/2​

Answer 1

Answer:

Step-by-step explanation:

Given Principal =64000.

Rate of interest = 20% P.A.

n = 1.5 years.

We know that A = P(1 + r/100)^n When the interest is compounded semi-annually.

A = P(1 + r/200)^2n = 64000(1 + 20/200)^3 = 64000(11/10)^3 = 64000 * 1.331 = 85184.

We know that CI = A - P = 85184 - 64000 = 21184.

We know that SI = PRT/100 = 64000 * 20 * 3/100 * 2 = 64000 * 60/200 = 19200.

Difference between Simple Intrest and Compound Intrest = 21184 - 19200 = 1984.