Question

Find the difference between the compound interest and the simple interest on Rs.5000 at after
2 years at 12% pa; if the interest is compounded after every 8 months

Answer 1

Answer:

Step-by-step explanation:

principal = Rs. 5000

rate = 9%

time = 2 years

now,

amount = p(1+r/100)^n

= 5000*109/100*109/100

= 59405/10

= 5940.5

compound interest = A-P

= 5940.5-5000

= 940.5

then,

simple interest = P*R*T/100

= 5000*9*2/100

= 900

difference = compounded interest - simple interest

= 940.5-900

= 40.5

thus, difference is 40.5.

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