Question

find the difference between the compound interest and simple interest on Rs 1000 at the rate of 5% annum for 1 year. please tell me ​

Answer 1

ANSWER:-

Compound interest = Amount − Principal

For two years,  CI =P(1+100R)2×1−P

CI =P(1+1005)2−P

CI =P(1.05)2−P

CI =1.1025P−P=0.1025P

Simple interest on P at 5% for 2 years = 100PRT

We know, SI = 100P×5×2=10P

Given that difference between compound interest and simple interest =1000.

Therefore, 0.1025P−10P=1000

⇒1.025P−P=10000

⇒0.025P=10000

⇒P= Rs. 400000

l hope l helped you