Question

find the difference between simple interest and compound interest on 12000rs at 9% per annum for 3 years ,

Answer 1

difference between simple interest and compound interest = compound interest - simple interest,

or

difference between CI & SI = CI - SI

= ( 3540.35 - 3240 ) Rs.

= 300.35 Rs. Answer

1 year SI = (Principal × Rate × Time)/100

1 year SI = ( 12000 × 9 × 1 )/100

1 year SI = 1080

3 year SI = 1080 × 3

3 year SI = 3240 Rs.

"Amount = [Principal (1+R/100)^T]"

1 year CI = Amount - Principal

1 year CI =[Principal(1+R/100)^T] - Principal

1 year CI =[ 12000(1+9/100)^1] - 12000

1 year CI = 13080 - 12000

1 year CI = 1080 Rs.

2 year CI =[ 12000(1+9/100)^2] - 12000

2 year CI = 14257.20 - 12000

2 year CI = 2257.20 Rs.

3 year CI =[ 12000(1+9/100)^3] - 12000

3 year CI = 15540.35 - 12000

3 year CI = 3540.35 Rs.