Question

Find the difference between the simple interest and
compound interest on 60,000 at 10% per annum for 3whole 1/2years
​

Answer 1

Step-by-step explanation:

Given Rate of interest is r=10%=0.1

Principal Amount is A=6,000

Time is t=2 years

Interest is compounded yearly once ⟹n=1

Amount =P(1+

n

r

)

nt

=6000×(1+0.1)

2

=7260

Interest is A−P=7260−6000=1260

Simple Interest is

100

6000×10×2

=1200

Difference between simple interest and compound interest is 1260−1200=60

Answer 2

Step-by-step explanation:

Given Rate of interest is r=10%=0.1

Principal Amount is A=6,000

Time is t=2 years

Interest is compounded yearly once ⟹n=1

Amount =P(1+

n

r

)

nt

=6000×(1+0.1)

2

=7260

Interest is A−P=7260−6000=1260

Simple Interest is

100

6000×10×2

=1200

Difference between simple interest and compound interest is 1260−1200=60