Question

find the difference between simple interest and compound interest on rs 1600 for 1 year at 5%per annum. compound interest being reckoned half yearly.

plz help me with this question n also try to type it down in steps.

thank u!!​

Answer 1

Answer:

₹40

Step-by-step explanation:

Simple Interest-

Given : P = 1600, R = 5 % and Time = 1 year.

Simple Interest = P*R*T/100

= (1600×5×1/100)

Simple Interest = Rs. 80

Compound Interest-

P = 1600, R = 2.5 % per half year Because compound interest is being reckoned half yearly and Time 1 year.

A = P(1 +R/100)ⁿ

= 1600(1 + 2.5/100)^1

= (1600×1.025)

= ₹1640

Compound Interest = 1640 - 1600 = Rs. ₹40

So, the difference between the compound interest and simple interest = 80-40 = Rs. 40

Hope it helps you!!