Question

find the difference between compound interest and simple interest if principal is rupees 4000 and rate is 5% and number of years is two years​

Answer 1

Answer

For ,

N=2years

R=10 %

P=Rs4,000

We have S.I.= 100

PPN = 100

4,000×2×10 =Rs800

And on interest being compounded for 2 years and R=10 %,

Amount=P(1+100 R )

N=4,000×(1+ 100 10 )

2=4,000×1.1×1.1=Rs.4,840

So, C.I.=A−P=4,840−4,000=840

And required difference C.I.−S.I.=840−800=Rs40