Question

Find the difference between simple interest and compound interest on rs 2000 for 2 years at the rate of 10% per anum

Answer 1

difference between C.I and S.I is 20 because
C.I - S.I = 420- 400 = 20

Answer 2

Answer:

Rs.20

Step-by-step explanation:

Principal =  Rs.2000

Rate of interest = R = 10% = 0.1

Time = 2 years

Formula : $SI =\frac{P \times R \times T}{100}$

$SI =\frac{2000 \times 10 \times 2}{100}$

$SI =400$

CI = Amount - Principal

Formula : $A=P(1+R)^t$

$A=2000(1+0.1)^2$

$A=2420$

CI = Amount - Principal

CI = 2420 - 2000

CI = 420

Difference between SI and CI = 420-400 =Rs.20

Hence The difference between simple interest and compound interest on rs 2000 for 2 years at the rate of 10% per annum is Rs.20