Question

Find the difference between compound interest and simple interest on Rs 12000 and in 1 1/2 years at 10 % compounded half yearly.​

Answer 1

Answer:

Step-by-step explanation:

Given : P = Rs 12,000; n = 1

2

1

​

 years and r = 10%

S.I.=

100

P×R×T

​

=

100

12,000×10×

2

3

​

​

=Rs1,800

To calculate C.I. For 1 year

P = Rs 12,000; n = 1 years and r = 10%

C.I.=P(1+

100

r

​

)

n

=12,000(1+

100

10

​

)

1

=Rs13,200

For next 1/2 year

P = Rs 13,200; n = 1/2 year and r = 10%

C.I.=P(1+

2×100

r

​

)

2×n

=13,200(1+

2×100

10

​

)

2

1

​

×n

=13,200(

20

21

​

)

1

= Rs 13,860

∴ C.I. = Rs 13,860 - Rs 12,000 = Rs 1,860

∴ Difference between C.I. and S.I.

= Rs 1,860 - Rs 1,800 = Rs 60