Question

find the difference between the compound interest and simple interest on ₹1000 at the rate of 5% per annum for 1 year​

Answer 1

Principal = ₹1000

Rate = 5%

Time = 1

Simple interest = Principal*Time*Rate/100

S.I = 1000*5*1/100

S.I = 5000/100

S.I = 50

Simple interest = ₹50

Amount = P(1+r/100)^n

Amount = 1000*(1+5/100)^1

Amount = 1000*(100+5/100)^1

Amount = 1000*105/100

Amount = 105000/100

Amount = 1050

Compound interest = Amount - Principal

C.I = 1050 - 1000

C.I = 50

Compound interest = ₹50

Difference = 50 - 50

= 0

Difference is ₹0.