Question

Find the difference between Simple Interest and
compound Interest for
3 years @ 5% P.a on 12,000 (interest
being charged half yearly)​

Answer 1

Answer:

116.32

Step-by-step explanation:

p= 12000

r=5%p.a

t=3 years

S.I = prt/100

= (12000*5*3)/100

=1800

C.I = p[(1+r/200)^t - 1]

=12000[(1+5/200)^3 - 1]

=1916.32

So, C.I - S.I = 1916.32 - 1800

= Rs 116.32

Answer 2

The amount at the end of 'n' years of investing in compound interest.

$A = P(1 + \frac{r}{100} {)}^{n}$

$here,$

$P = 12000$

$n = 3$

$r = 5\%$

$A = 12000(1 + \frac{5}{100} {)}^{3}$

$= rs.13891.5$

now, compound interest

$CI = amount - principle \\ = 13891.5 - 12000 \\ \boxed{= rs.1891.5}$