Question

find the difference between SI and CI on rs 12000 at 9% per annum for 2 years​

Answer 1

Answer:

There is a simple formula to solve this:

If the difference between compound and simple interest is of two years than,

Difference =  $\frac{PR^{2}} {100^{2} }$

So replacing the values into the equation:

$\frac{PR^{2}} {100^{2} }$

⇒$\frac{12000*(9)^{2} }{10000}\\= 1.2*81\\=97.2$

So the answer to your question is 97.2

Tip:

If the difference between compound and simple interest is of two years than,

Difference = P(R)²/(100)²

Where P = principal amount, R = rate of interest

If the difference between compound and simple interest is of three years than,

Difference = 3 x P(R)²/(100)² + P (R/100)³.

Here also, P = principal amount, R = rate of interest