Question

find the difference between the simple insterest and compound insterest on rs.4800 for 2 years at 5% per annum, compound insterest being reckoned annually​

Answer 1

Step-by-step explanation:

Given :

Principle = Rs 4800

Rate = 5 %

Time = 2 year

Find : Compound interest reckoned

Solutions : S.I = P + r / 100

S.I = 4800 × 2 × 5 / 100 ( divided by denominator to Numerator )

S. I = Rs 480

Compound interest

Case I

Interest = 4800×5×1/ 100

interest = Rs 240

Amount = Rs ( 4800 + 240 )

Amount = Rs 5040

Case ll

Principal = 5040

Rate = 5 %

Time = 1 year

interest = 5040×5×1 / 100 ( divided by numerator to denominator)

interest = Rs 252

Amount = Rs ( 5040 + 252 )

Amount = 5292

Compound interest = Rs 5292 - 4800

Compound interest = 492

Difference between compound interest and simple interest 412