Question

find the difference between compound interest and simple interest if P = 3000 ​

Answer 1

Step-by-step explanation:

Answer

Principal =Rs.3000

Rate =5%

Time =2 years

For compound interest,

A=P(1+

100

R

)

T

A=3000(1+

100

5

)

2

A=

20×20

3000×21×21

A=Rs.3307.50

Thus, CI=A−P=3307.5−3000=Rs.307.50

For Simple Interest,

SI=

100

PRT

SI=

100

3000×5×2

SI=Rs.300

Now, Difference between CI and SI = 307.5−300=Rs.7.5