Question

find the difference between Simple interest and compound interest on RS 2500 for 2 years at 4 percent per annum, compound interest being reckoned semi annually.

Answer 1

Answer:

he difference between Simple interest and compound interest is 6.08

Step-by-step explanation:

S.I=P×R×T/100

=2500×4×2/100

=200

Now rate is reckoned as half yearly

So,r =2℅ and time got doubled i.e 2×2=4 years

C.I=P(1+r/100)^t-P

= 2500(1+2/100)^4-2500

=2706.08-2500

=206.08

difference=C.I-S.I

=206.08-200

=6.08