Question

find the difference between the compound interest and the simple interest on Rs 4000 for 2 years at 10%.​

Answer 1

Step-by-step explanation:

For ,

N=2years

R=10 %

P=Rs4,000

We have S.I.=

100

pnr

=

100

4,000×2×10

=Rs800

And on interest being compounded for 2 years and R=10 %, Amount=P(1+

100

R

)

N

=4,000×(1+

100

10

)

2

=4,000×1.1×1.1=Rs.4,840

So, C.I.=A−P=4,840−4,000=840

And required difference C.I.−S.I.=840−800=Rs40