find the difference between smiple interest and compound interest on ₹ 4000 at 10% for 2 years
Answers
Answer:
For ,
N=2years
R=10 %
P=Rs4,000
We have S.I.=
100
PNR
=
100
4,000×2×10
=Rs800
And on interest being compounded for 2 years and R=10 %, Amount=P(1+
100
R
)
N
=4,000×(1+
100
10
)
2
=4,000×1.1×1.1=Rs.4,840
So, C.I.=A−P=4,840−4,000=840
And required difference C.I.−S.I.=840−800=Rs40
Solution!!
Principal (P) = Rs 4000
Rate of interest (R) = 10%
Time (T) = 2 years
Interest = (P × R × T)/100
Interest = (4000 × 10 × 2)/100
Interest = 40 × 10 × 2
Interest = Rs 800
Simple interest = Rs 800
_______________________________
Principal (P) = Rs 4000
Rate of interest (R) = 10%
Time (n) = 2 years
Amount = P(1 + (R/100))²
Here 2 is the time (n).
Amount = 4000(1 + (10/100))²
Amount = 4000(110/100)²
Amount = 4000(11/10)²
Amount = 4000 × (11/10) × (11/10)
Amount = 40 × 11 × 11
Amount = Rs 4840
CI = Amount - Principal
CI = Rs 4840 - Rs 4000
CI = Rs 840
Compound interest = Rs 840
Simple interest = Rs 800
Difference between them = Rs 840 - Rs 800
Difference between CI and SI = Rs 40