Question

find the difference between the compound interest and simple interest on rs 30000 at 7% per annum for three year

Answer 1

Simple interest = P*T*R=30000*7/100*3 =6300
Compound interest= P(1+R)^T
=30000(1+7/100)^3
= 30000*107/100*107/100*107/100
= 36751.29-30000
= 6751.29 is compound interest
Difference in compound and simple interest is=6751.29-63000 =451.29
Coumpund interest is more than simple interest