Question

find the Difference between compound interest and simple interest on Rs 500 at the rate of 5% interest p. a for 2½ yrs​

Answer 1

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☞ simple interest

• PRN/100
• 500×5×2.5 /100
• 62.4 rs

☞ compound interest

• p[(1+i)ñ-1]
• 1st year interest = 500×5% = 25
• 2nd year interest = 525×5% = 26.25
• 2.5 year interest = 551.25×5% = 13.78
• total intrest = 65.03 rs

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Answer 2

Step-by-step explanation:

compound interest

A= p(1+r/100)xt

A= 500(1+5/100)x2x1/2

A=500(100+5/100)2.5

A=500(105/100)2.5

A=500x1.05x2.5

A=₹ 1312.5

simple intrest

principal x interest x time

500x5x2.5

2500x2.5

6250

Difference = 6250-1312.5=4937.5