Question

find the difference between compound interest and simple interest if P = 3000 , R = 5 p.c.p.a. and N = 2 years​

Answer 1

Answer:

If the difference between compound and simple interest is of two years than,

Difference = P(R)²/(100)²

Where P = principal amount, R = rate of interest

If the difference between compound and simple interest is of three years than,

Difference = 3 x P(R)²/(100)² + P (R/100)³.

Here also, P = principal amount, R = rate of interest