Find the difference between compound interest and simple interest on a sum of rs 50000 at 10% per annum for 2 years?
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Step-by-step explanation:
Given details are,
Principal (p) = Rs 50000
Rate (r) = 10 % per annum
Time (t) = 2 years
By using the formula,
A = P (1 + R/100) n
= 50000 (1 + 10/100)2
= 50000 (110/100)2
= Rs 60500 CI
= Rs 60500 – 50000
= Rs 10500
We know that SI = (PTR)/100
= (50000 × 10 × 2)/100
= Rs 10000
∴ Difference amount between CI and SI
= 10500 – 10000 = Rs 500
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