Question

find the difference between the compound interest and simple interest on rupees 32000 at 12%p.a. for a 3 years​

Answer 1

Solution :

Given ,

Principal   =  32,000

Rate = 12% per annum

Time = 3 Years

Finding the Simple Interest

Simple Interest = Principal  * Rate * Time

⇒ 32,00 * (12/100) * 3

⇒ Rs. 11520

Finding the Amount

Amount = Principal (1 + R/100) * n

⇒ 32000(1 + 12/100) * 3

⇒  32000 *  112/100 *  112/100 *  112/100

⇒ Rs. 44928

Finding the Compound Interest

⇒ Amount - Principal

⇒ 44928 - 32000 ( in Rs. )

⇒ Rs. 12928

Finding the difference between the Compound Interest and Simple Interest

⇒ 12928 - 11520 ( in Rupees )

⇒ Rs. 1408

Therefore , the difference between the  Compound Interest and Simple Interest  is of Rs. 1408

Answer 2

Solution :

Given -

Principal : ₹32000

Time : 3 years.

Rate : 12% p.a.

To find the difference between the Simple Interest and the Compound Interest at the end of last year.

Simple Interest :

We know that ,

Simple Interest = P × R × T / 100

➨ 32000 × 12 × 3/100

➨ 320 × 12 × 3

➨ ₹11,520

Compound Interest :

We know that ,

Amount = P ( 1 + R/100)n

➨ 32000 ( 1 + 12/100)³

➨ 32000 ( 112/100)³

➨ 32000 × 112/100 × 112/100 × 112/100

➨ ₹ 44,958

Compound Interest = Amount - Principal

➨ CI = ₹(44958 - 32000)

➨ CI = ₹12958

Now ,

The difference between the SI AMD CI :-

➨ Difference = CI - SI

➨ Difference = 12958 - 11,520

➨ Difference = ₹1,438 ( approx )