Question

Find the difference between simple and compound interest for 3 years at 10% per annum, when the interest is compounded annually on $30,000

Answer 1

Answer:

Rs 930

Step-by-step explanation:

Principal= Rs 30,000

Rate = 10%

Time = 3 years

Simple Interest =

$\implies \dfrac{ \sf \: P \times R \times T }{100}$

$\implies \: \dfrac{30000 \times 10 \times 3}{100}$

$\implies \sf \: \cancel \dfrac{900000}{100}$

$\huge{\boxed{\tt{Rs\:9000}}}$

Compound Interest =

$\sf \: Amount = P \: (1 + \dfrac{r}{100} ) ^{n}$

$\sf \: Amount = 30000(1 + \dfrac{10}{100} ) ^{3}$

$\sf \: Amount = 30000( \dfrac{100 + 10}{100} ) ^{3}$

$\sf \: Amount = \ 3 \cancel0 \cancel0 \cancel0 \cancel0 \times \dfrac{11 \cancel0}{1 \cancel0 \cancel0} \times \dfrac{11 \cancel0}{1 \cancel0 \cancel0} \times \dfrac{110}{1 \cancel 0 \cancel0}$

$\sf \: Amount = Rs \: 39930$

Compound Interest = Amount - Principal

Compound Interest = Rs 39930- Rs 30,000

$\huge{\boxed{\tt{Rs\:9930}}}$

Difference Between C.I and S.I

$\sf \: Rs \: 9930 -Rs \: 9000$

$\huge{\boxed{\tt{Rs\:930}}}$