find the difference between the simple interest and compound interest on 2500 for 2 years at 10% pa
compound annualy
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Answer:
here, principal (p)=2500
rate (r)=10 percent per year
time (t)=2 years
case1
we know that, compound interest =p((1+r/100)^t-1)
2500((1+10/100)^2-1)
2500(1.21-1)
2500×0.21
=Rs.525
case2
simple interest =p×t×r/100
=2500×2×10/100
=500
difference between compound interest and simple interest
=525-500
=Rs.25
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