Question

Find the difference between simple interest and compound interest on₹ 2400 for 2 years at 5% p.a. compounded annually​

Answer 1

Answer:

SI=2400*5*2/100=240₹

$c= 2400 \times ( {105 \div 100)}^{2} = 2646$

CI=246₹

so difference is 6₹

Answer 2

Given :-

• Principal = Rs. 2400
• Rate of intrest = 5%
• Time period = 2 years

To Find :-

• The difference between Simple Intrest and Compound Intrest.

Solution :-

To calculate the Compound intrest first of all we have to calculate the Amount :

→ Amount = Principal × [1 + Rate/100]ⁿ

→ Amount = 2400 × [1 + 5/100]²

→ Amount = 2400 × [1 + 1/20]²

→ Amount = 2400 × [21/20]²

→ Amount = 2400 × 441/400

→ Amount = 6 × 441

→ Amount = Rs. 2646

Hence,

• Amount is Rs. 2646

Now, let's calculate the Compound Intrest :

➝ Compound Intrest = Amount - Principal

➝ Compound Intrest = 2646 - 2400

➝ Compound Intrest = Rs. 246

Hence,

• Compound Intrest is Rs. 246

Finding the Simple Intrest :

➻ Simple Intrest = Principal × Rate × Time ÷ 100

➻ Simple Intrest = 2400 × 5 × 2 ÷ 100

➻ Simple Intrest = 24000 ÷ 100

➻ Simple Intrest = Rs. 240

Hence,

• Simple Intrest is Rs. 240

Now, in question it is said that we have to find the difference between Simple Intrest and Compound Intrest :

So, let's calculate the diffrence between Compound Interest and Simple Intrest :

➺ Compound Intrest - Simple Intrest

➺ 246 - 240

➺ Rs. 6

Therefore,the diffrence between Compound Intrest and Simple Intrest is Rs. 6.