Question

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

Answer 1

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. = PARAT/ 100

=> 20000Ā8Ā1/100

=> ₹ 1600

Compound Interest


C.I. = PARAT/ 100
=> 
20000Ā8Ā1/100

=> ₹ 1600

Difference :

₹1600 - ₹1600

=> 0