Question

Find the difference between compound interest and simple interest on Rs.45000 at 12% per annum

for 5 years.
with step by step explanation
I bet you 5 points that you can't do it​

Answer 1

First, find SI

SI=PRT/100=45000×12×5/100=2,700 Rs.

Now, find CI

A=P(1+r/100)^t=45000(1+0.12)⁵=79,305.37 Rs.

CI=A-P=79,305.37-45000=34,305.37 Rs.

Difference=34,305.37-2,700=31,605.37 Rs.

Therefore, the difference between CI and SI here is 31,605.47 Rs.