Question

Find the difference between the simple interest and compound interest on Rs. 2500 for
2 years at 4% per annum, compound interest being reckoned semi-annually.

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I need proper steps. ..​

Answer 1

Step-by-step explanation:

While both types of interest will grow your money over time, there is a big difference between the two. Specifically, simple interest is only paid on principal, while compound interest is paid on the principal plus all of the interest that has previously been earned.