Question

Find the difference between the simple interest and compound interest on rs 12500 for 3 years at 12% p.a. compounded annually.

Answer 1

P=₹12500,R=12%,T=3years.                                

Answer 2

Answer:

561.6

Step-by-step explanation:

First find S.I.:

                              S.I.=PxRxT/100

                              S.I.=12500x12x3/100 = 4500

Next find Amount:

                              Amount = P( 1 + r/100)n

                              A = 12500(1 + 12/100)3 = 17561.6

Next find C.I.:

                              C.I.=Amount - P

                              C.I.=17561.6 - 12500 = 5061.6

Next find Difference:

                              C.I. - S.I. = Ans

                              5061.6 - 4500 = 561.6