Question

find the difference between compound interest and simple interest on a sum of rupees 64,000 at the rate of 20% p.a compounded semi-annually for 1 and a half years

Answer 1

20 /100*6400=1280is the anwer

Answer 2

Given , sum (p) =Rs 64,000

rate = 20 % p.a , time (t ) = 1 and half yr

=(1 + 1/ 2 ) yr = 3 /2 yr

step 1 Find simple interest ( S.I ) :
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S.I= p × r × t /100

=64000 × 20 × 3 /2 / 100

=64000 × 60 /200

=Rs 19200

step 2 Find compound interest:
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sum (p) = 64,000 ,R = 20 / 2 = 10 % half yearly

Time = 1 and half year = 3 half year

Amount = p ( 1 + R /100 )^T

=64,000 ( 1 + 10 /100 )^3

=64000 ( 1 + 1 /10 )^3

=64000 × 11/10 × 11/10 × 11 /10

=64 × 11 × 11 × 11 = Rs 85,184

Compound interest( C.I ) = amount - sum( p )

C.I = 85,184 - 64,000 = Rs 21,184

difference between compound interest and simple interest = C.I - S.I

=Rs 21,184 - Rs 19200 = Rs 1984

therefore required difference between

C.I and S.I = Rs 1984
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Your Answer : Rs 1984
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