Question

Find the difference between the simple interest and compound interest on rupees 16000 for 1/1|2 years 5% per annum compound interest being reckoned half yearly??

Answer 1

Answer:

FOR S.I

P=Rs 16000 , R=5% and T=3/2 yrs

S.I=P×R×T/100

Subsitute the values and after doing the calculations we get

S.I=Rs 1200

For Compound Interest

P=Rs 16000. , R=5/2%=2.5% and n=3

A=P(1+R/100)n and C.I=P-A

Subsitute the values and after doing the calculations we get

C.I=Rs 1230.25

C.I-S.I=1230.25-1200=Rs 30.25