Question

find the difference between the compound interest and simple interest on 5000 for 2 years at 5 %per annum

Answer 1

SI.
SI = P×R×Y/100
=5000×5×2/100

Answer 2

GIVEN :

Principal =5000

Time =2years

Rate =5%

We known :

Simple interest =P*T *R /100

=5000*2*5/100

=500

Compound interest :

Amount = Principal (1+r/100)2

A=5000(1+5/100)2

A=5000(1+1/20)2

A=5000(21/20)2

A =5000*441/400

A=22050/4

A=5512.5

Compound interest =Amount - Principal

=5512.5-5000

=512.5

Diffrence of Compound interest or Simple
interest.

=512.5-500

=12.5

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