Question

Find the difference between simple interest and compound interest on ₹ 20000 at 8 p.c.p.a.

Answer 1

$<b>Heya !$

Here's your answer !!

For the 1 year, the simple interest and compound interest will be same for the given amount.

For 2 years or more, simple interest is calculated on the same principle.

But for compound interest,
each successive year has new principle amount including the compound interest.

Simple Interest

S.I. = $\bf{\frac{P×R×T}{100}}$

=> $\bf{\frac{20000×8×1}{100}}$

=> ₹ 1600

Compound Interest


C.I. = $\bf{\frac{P×R×T}{100}}$

=> $\bf{\frac{20000×8×1}{100}}$

=> ₹ 1600

Difference :

₹1600 - ₹1600

=> 0






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Thanks !!

Answer 2

I hope it will help you