Question

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

Answer 1

THANKS FOR THE QUESTION !

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GIVEN :

PRINCIPLE = 5000 RS

TIME = 2 YRS

RATE = 5 P.C.P.A

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AMOUNT FOR COMPOUND INTEREST :

P ( 1+R/100) ^T

5,000 ( 1+5/100)^2

5,000 (100+5/100)^2

5,000 (105/100)^2

5,000 * 105/100 * 105/100

5 * 105 * 105/10

105 * 105 / 2

11025 / 2

5512.5 rs....

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COMPOUND INTEREST :

AMOUNT - PRINCIPLE

5,512.5 - 5,000

512.5 rs

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SIMPLE INTEREST :

P * T * R / 100

5,000 * 2 * 5 / 100

50 * 2 * 5

100 * 5

500 rs

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DIFFERENCE BETWEEN COMPOUND INTEREST AND SIMPLE INTEREST :

COMPOUND INTEREST - SIMPLE INTEREST

512.5 RS - 500 RS

12.5 RS

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ANS :

..........." 12.5 RS ".............

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