Question

find the difference between the simple interest and compound interest interest on 20000 at 10% b. A. Compound annually for three year ​

Answer 1

SI = PRT/100 = (20000 * 10 * 3)/100 = 6000

CI = P (1+ r/100)^t - P

= 20000 (1 + 10/100)^3 - 20000

= 20000 ( 1 + 1/10)^t - 20000

= 20000 * 11/10 * 11/10 * 11/10 - 20000

= 26620 - 20000

= 6620

CI - SI = 6620 - 6000 = 620