Question

find the difference between the compound interest and the simple interest on a sum of Rs.1600 for 3 years at the rate of interest 2% per annum.

Answer 1

c. I. ..... p( (1+r/100)^2-1)
1600(1+2/100)^3-1)
1600(102/100)^3-1)
1600(51/50)^3-1)
1600(132651/125000)-1)
1600(132651-125000/125000)
1600(7651/125000)=97.9328
s.I. =prt/100
1600×2×3/100
=96
difference between c.I and s.I. is 97.9328-96=1.9328