Question

Find the difference between the compound interest and the simple interest for the sum Rs 1250 at 4% per annum for 2 years. *​

Answer 1

$\huge{ \underline{ \mathfrak{ \green{ \: Answer}}}}$

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$\boxed{\red{\bold{Simple\:Interest :}}}$

➠${\displaystyle{\frac{P × R ×T}{100}}}$

➠${\displaystyle{\frac{1250 × 4 × 2}{100}}}$

➠${\displaystyle{\frac{100}{1}}}$

➠₹$100$

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$\boxed{\red{\bold{Compound\:Interest:}}}$

➠$P \left( 1 + {\displaystyle{\frac{R}{100}}} \right)^{T}$ $- P$

➠$1250 \left( 1 + {\displaystyle{\frac{4}{100}}} \right)^{2}$$- P$

➠$1250 × {\displaystyle{\frac{26}{25}} × {\frac{26}{25}}}$$- P$

➠₹$1352 -$₹$1250$

➠₹ $102$

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$\boxed{\red{\bold{Difference:}}}$

➠$Compound\: interest - Simple\: interest$

➠₹$102 -$ ₹$100$

➠₹ 2

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