Question

find the difference between the compound interest and the simple interest on rupees 5000 for 3 years at 10% per annum​

Answer 1

Given:-

Principal (P) = 5000

Rate (R) = 10%

Time (t) = 3 years

Find:-

Difference between the compound interest and simple interest.

Solution:-

We have given principle 5000, rate 10% and time 3 years.

We have to difference between compound interest and simple interest.

Simple Interest = $\sf {\bold{\dfrac{P \: \times \: R \times T}{100}} }$

Substitute the known values in above formula

=> $\sf{\dfrac{5000\: \times \: 10 \times 3}{100}}$

=> $\sf{1500}$

Compound Interest = $\sf{ \bold{ A\:=\:P \bigg(1 \: + \: \dfrac{R}{100} \bigg) }^{t} }$

Substitute the known values in above formula

=> $\sf{ 5000 \bigg(1 \: + \: \dfrac{10}{100} \bigg) }^{3}$

=> $\sf{ 5000\bigg(\dfrac{110}{100} \bigg) }^{3}$

On solving we get,

=> $\sf{6655}$

Compound Interest = Amount - Principal

=> 6655 - 5000

=> 1655

Difference = Compound Interest - Simple Interest

=> 1655 - 1500

=> 155

•°• Difference between compound interest and simple interest is 155

Answer 2

AnswEr :

• Given :

• Principal = Rs. 5000
• Rate = 10% p.a.
• Time = 3 Years

• To Find :

• Difference Between Compound Interest and Simple Interest.

• Solution :

▣ SI = PRT / 100

➟ SI = (5000 × 10 × 3) / 100

➟ SI = 50 × 10 × 3

➟ SI = Rs. 1500

▣ CI = P × [ (1 + r/100)^t - 1 ]

➟ CI = 5000 × [ (1 + 10/100)³ - 1 ]

➟ CI = 5000 × [ (1 + 1/10)³ - 1 ]

➟ CI = 5000 × [ (11/10)³ - 1 ]

➟ CI = 5000 × [ 1331/1000 - 1 ]

➟ CI = 5000 × 331 / 1000

➟ CI = 5 × 331

➟ CI = Rs. 1655

_________________________________

⇒ Difference = CI - SI

⇒ Difference = Rs. 1655 - Rs. 1500

⇒ Difference = Rs. 155

჻ Difference between CI and SI is Rs.155