find the difference between compound interest and simple interest on a sum of Rs. 16000 at 10% p.a. for 3 years.
Answers
Step-by-step explanation:
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Here is your answer
P = Rs 16000
R = 2%p.a
T = 3 years
SI = PRT/100
\begin{gathered}= \frac{16000 \times 2 \times 3}{100} \\ = 960\end{gathered}=10016000×2×3=960
Simple interest is Rs 960
Now
For Compound Interest
A = P(1+ R/100)^n
\begin{gathered}= 16000 \times (1 + \frac{2}{100} ) {}^{3} \\ = 16000 \times (1 + \frac{1}{50} ) {}^{3} \\ = 16000 \times ( \frac{51}{50} ) {}^{3} \\ = \frac{16000 \times 51 \times 51 \times 51}{50 \times 50 \times 50} \\ = 16979.328\end{gathered}=16000×(1+1002)3=16000×(1+501)3=16000×(5051)3=50×50×5016000×51×51×51=16979.328
Therefore Compound Interest is
= A - P
= 16,979.328 - 16000
= Rs 979.328
Now The difference between Compound Interest and simple interest is
= 979.328 - 960
= Rs 19.328