Question

find the difference between simple interest and compound interest on ₹2400 for 2 years at 5% per anjum compounded annually.​

Answer 1

$\red{\textbf{The difference =6}}$

Step-by-step explanation:

$SI  =\LARGE \frac{P*R*T}{100}$

$SI = \LARGE \frac{2400 \times 2 \times 5}{100}$

$SI = 240$

$Compound \: interest:$

$Interest \: for \: first \: year   =$

$\LARGE \frac{2400 \times 5 \times 1}{100} \small = 120$

$Amount \: after \: first \: year  =$

$=2400+120=2520$

$Interest \: for \: second \: year   =$

$\LARGE \frac{2500 \times 5 \times 1}{100}$

$= 126$

$Amount \: after \: first \: year  =2520+126=2646$

$Hence \: compound \: interest  =2646 - 2400=246$

$Difference \: between \: CI \: and SI =246 - 240=6$