find the difference between simple interest and compounds interest in 6400 for 2 years at 6¼ percent p.a. compounded annually.
pls help me fast I have an exam
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IN,Simple interest
P= 6400
R= 6½=25/2
T=2years
S.I.= P*R℅*T. =6400*25*2/100*2 = 320000/200 = 1600
IN,Compound interest
C.I.=p[(1+r/100)^n-1]
= 6400[(1+25/200)^2-1]
= 6400[(1+1/8)^2-1]
= 6400[81/64-1]
= 6400*17/64
= 100*17
= 1700
difference=C.I.-S.I.
=1700-1600 = 100
P= 6400
R= 6½=25/2
T=2years
S.I.= P*R℅*T. =6400*25*2/100*2 = 320000/200 = 1600
IN,Compound interest
C.I.=p[(1+r/100)^n-1]
= 6400[(1+25/200)^2-1]
= 6400[(1+1/8)^2-1]
= 6400[81/64-1]
= 6400*17/64
= 100*17
= 1700
difference=C.I.-S.I.
=1700-1600 = 100
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