Question

Find the difference between compound interest and simple interest for 8000 for 3 years at
the rate of 10% p.a.
​

Answer 1

Answer:

Difference between CI and SI = 248

Step-by-step explanation:

$CI = P(1+\frac{R}{100} )^n -P \\= 8000(1 + \frac{10}{100} )^3 - 8000\\= 8000* \frac{11}{10} * \frac{11}{10} * \frac{11}{10} -8000 \\= 10648 -8000\\CI = 2648$

$SI = \frac{8000*3*10}{100} = 2400$

Difference between CI and SI = 2648 - 2400 = 248

Answer 2

S O L U T I O N :

Given :

• Principal (P) = Rs. 8000
• Time (t) = 3 years
• Rate of interest (R) = 10 %

To Find :

• Difference between C.I and S.I.

Explanation :

Case (I), Simple interest,

Applying simple interest formula,

S.I = P × R × t /100

[ Put the values ]

↪ S.I = 8000 × 10 × 3 / 100

↪ S.I = 80 × 10 × 3

↪ S.I = Rs. 2400

Case (II), Compound interest

Applying compound interest formula,

C.I = [ P(1 + R/100)^n - P ]

[ Put the values ]

↪ C.I = [ 8000(1 + 10/100)³ - 8000 ]

↪ C.I = [ 8000 (100 + 10/100)³ - 8000 ]

↪ C.I = [ 8000 (110/100)³ - 8000 ]

↪ C.I = [ 8000 × 110/100 × 110/100 × 110/100 - 8000 ]

↪ C.I = [ 8 × 11 × 11 × 11 - 8000 ]

↪ C.I = [ 10648 - 8000 ]

↪ C.I = Rs. 2648

Now,

Difference = Compound interest - Simple interest

[ Put the values ]

↪ Difference = 2648 - 2400

↪ Difference = Rs. 248

Therefore,

The difference between compound interest and simple interest is Rs. 248.