Question

find the difference between simple interest and compound interest and compound interest inRS 6400 for 2 years at 61\4% p.a compounded annually

Answer 1

$si = \frac{6400 \times 25 \times 2}{4 \times 100} = 16 \times 25 \times 2 = 800 \\ ci = 6400{(1 + \frac{25}{400} )}^{2} - 6400 \\ = 6400 {(1 + \frac{1}{16} )}^{2} - 6400 \\ = 6400( \frac{289}{256} - 1) \\ = 6400 \times \frac{33}{256} \\ = 400 \times \frac{33}{16} = 25 \times 33 = 825 \\ ci - si = 825- 800 = 25$

Answer 2

Answer:

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