Question

Find the difference between simple interest and compound interest on rupees 20000 at 8 p.c.p.a

Answer 1

Answer:

Find the difference between simple interest and compound interest on rupees 20000 at 8 p.c.p.a

In the question "Time" is not given. So the question is solved taking time as 2 years, because simple interest and compound interest will be same for one year.

Here, P = Principal = ₹ 20000

R = 8 %

N = 2 years

Simple interest =P×R×N/100

=20000×8×2/100

=3200

Amount = P × (1+R100) N

=20000×(1+8100)²

=20000(1+225)²

=20000(2725)²

=23328

Compound interest=23328−20000 =3328

Compound interest−Simple interest

=3328−3000

=128

Hence, the difference between simple interest and compound interest is ₹ 128.