find the difference between the compound interest and simple interest on rupees 5000 for 2 years at 5% per annum please do not give direct answer
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Princlple(P)= Rs. 5000
Rate(R)= 5% p.a.
Time(T)= 2 years
Amount(A)= ?
For SI,
A=
or, A=
or, A= Rs. 50×2×5
or, A= Rs. 500
Now,
SI= Rs. 5000+Rs. 500
=Rs. 5500
Again, For CI,
A= P(1+)
or, A= Rs. 5000(1+)²
or, A= Rs. 5000(1+)²
or, A= Rs. 5000()²
or, A= Rs. 5000××
or, A= Rs. 25×21×
or, A= Rs.
or, A= Rs. 5512·5
Now,
CI - SI
=Rs. 5512·5 - Rs. 5500
=Rs. 12·5
∴the difference between the compound interest and simple interest on rupees 5000 for 2 years at 5% per annum is Rs. 12·5
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