Question

find the difference between SI and CI on rs5000 at 4% p.a. for three years​

Answer 1

Answer:

Difference between S.I. and C.I. on Rs.5000 at 4% p.a. for 3 years is 42.32

Explanation:

We know,

$\rm \bullet \: \: Simple \: interest = \dfrac{p \times r \times t}{100}$

Where,

• p(principal) = Rs.5,000
• r(rate) = 4% p.a.
• t(time) = 3 years.

$\rm = \dfrac{prt}{100}$

$= \dfrac{50 \cancel{00}\times 4 \times 3}{1 \cancel{00} }$

$= 50 \times 4 \times 3$

$= 600$

∴ Simple interest: Rs.600

Now,

Calculating compound interest,

We know,

$\rm \: \bullet \: \:Compound \: interest = Amount - Principal$

Using amount formula,

$\rm = p \bigg( 1 + \dfrac{r}{100} \bigg)^{t}$

Where,

• p(principal) = Rs.5000
• r(rate) = 4% p.a.
• t(time) = 3 years

So, C. I. :-

$\rm = p \bigg( 1 + \dfrac{r}{100} \bigg)^{t} - p$

$\rm = 5000\bigg( 1 + \dfrac{4}{100} \bigg)^{3} - 5000$

$\rm = 5000\bigg( 1 + \dfrac{1}{25} \bigg)^{3} - 5000$

$\rm = 5000\bigg( \dfrac{26}{25} \bigg)^{3} - 5000$

$\rm = 5000 \times \dfrac{17576}{15625} - 5000$

$\rm = 5624.32 - 5000$

$= 624.32$

Hence, the difference between S.I. and C.I. is :-

$= 642.32 - 600$

$= 42.32$

∴ Required answer: Rs. 42.32

Answer 2

Answer:

Difference between S.I. and C.I. on Rs.5000 at 4% p.a. for 3 years is 42.32