Question

Find the difference between compound interest and simple interest on ,8000 for 2 years at 11 % per annum payable yearly. ( with steps )

Answer 1

Answer:

10000%

Step-by-step explanation:

hope it helps you please mark brainliest

Answer 2

Answer:

Given :

• Amount is = 8000 INR
• Time is = 2 years

• Rate of interest is = 11% p.a.

To find:

Difference between compound interest and simple interest.

Solution: We can simply solve this mathematical problem by using the following mathematical process.

First of all, we have to know about the mathematical relationship between simple interest and compound interest.

Formulae to be used in this problem:

Simple interest = (principal*rate*time) / 100 ;

Compound interest = Amount=principal(1+rate/100)^number of years given ;

According to the data mentioned in the question ,

=> simple interest = (8000*2*11)/100 ;

=> simple interest = 80*2*11 ;

=> simple interest = 1760 ;

Total amount acquired is =principal+interest;

 =>8000+1760=9760

compound interest = Amount=principal(1+rate/100)^number of years given ;

=> Compound interest = 8000(1+11/100)^2;

=> Compound interest = 8000*1.2321;

=> Compound interest =9856.8;

So the difference between simple interest and compound interest is;

Compound interest - Simple interest = 9856.8 - 9760 = 96.8

Hence the difference is 96.8.