Question

Find the difference between the compound interest and the simple interest on rs30000 at 7% per annum 3 years

Answer 1

Answer:

Compound Interest

Amount = P(1+r/100)^t

             = 30000(1+7/100)^3

             = 36,751.29

Then,

Compound interest= Amount-Principal

                                = 6751.29

Simple Interest

Simple interest = prt/100

             = 30000*7*3/100

             = 6300

Then,

Difference between the compound interest and the simple interest

= 6751.29 -6300

= 451.29