Question

Find the difference between simple interest and compound interest on 12000 at 9% per annum for 3 years,compounded annually.

Answer 1

Difference between
C.I.-S.I.=₹300.348

Answer 2

Hello mate,

Simple Interest = 12000×(9/100)×3=3240

Compound Interest =
$p{(1 + \frac{r}{n} )^ {nt} } - p$
where P = Principal Amount
r = rate of interest
n = no. of times compounded
t = time
C.I. =
$12000 {(1 + \frac{0.09}{1} )}^{1 \times 3} - 12000 = 3540.348$
So, the difference b/w C.I. & S.I. is 3540.348-3240=300.348
Hope it helps.
If any doubt ask by commenting. :)