Question

find the difference between Compound interest and simple interest on rs 9000 at 8 percent per annum for 2 years the interest being Compounded annually​

Answer 1

Answer:

Let the sum be Rs. 100.

Then S.I. = Rs

100

100×2×8

= Rs. 16

C.I. = Rs. 100[(1+

100

8

)

2

−1]

= Rs. 100[(

25

27

)

2

−1] = Rs. 100×[

625

729−625

]

= Rs. (

625

100×104

)= Rs. 16.64

∴ Difference = Rs. 0.64, If the difference between C.I. and S.I. is Rs. 0.64, Sum = Rs. 100

If the difference is Rs. 768 sum = Rs. Rs. (

0.64

100

×768)= Rs.