Question

find the difference between the simple interest and compound interest on rupees 5,000 for 2 year at 6% per annum​

Answer 1

P=5000

R=6

T=2

Simple intrest=P×R×T÷100

=5000×6×2÷100

=600

Compound intrest=P(1+R/100)^t-P

=5000(1+6/100)^2-5000

=5000(106/100)^2-5000

=5000×(11236/10000)-5000

=5000[(11236/10000)-1]

=5000(1236/10000)

=5×1236/10

=6180/10

=618

Diff between simple intrest and compound intrest is:

618-600

=18

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another formula is

If the difference between compound and simple interest is of two years than,

Difference = P(R)²/(100)²

Where P = principal amount, R = rate of interest

so,

5000(6)^2/(100)^2

=5000×36/10000

180/10

=18