Question

find the difference between the simple interest and compound interest on 2500 for 2 years and 4% per annum compound interest being reckoned semi annually

Answer 1

S.I=P×R×T/100
=2500×4×2/100
=200

Now rate is reckoned as half yearly
So,r =2℅ and time got doubled i.e 2×2=4 years
C.I=P(1+r/100)^t-P
= 2500(1+2/100)^4-2500
=2706.08-2500
=206.08
difference=C.I-S.I
=206.08-200
=6.08