find the difference between the simple interest and compound interest on ₹16,000for 1 years at 5% per annum, compound internet reckoned half yearly
Answers
Answer:
see down
Step-by-step explanation:
Difference between Simple Interest And Compound Interest is Rs. 30.25
Step-by-step explanation:
Given: Principal, P = Rs. 16000
Rate of Interest , R = 5% p.a.
Time = 3/2 years.
To find: Difference between Simple Interest And Compound Interest.
We know that,
SI=\frac{P\time R\times T}{100}SI=
100
P\timeR×T
SI=\frac{16000\times5\times\frac{3}{2}}{100}SI=
100
16000×5×
2
3
SI=160\times5\times\frac{3}{2}SI=160×5×
2
3
SI=80\times15SI=80×15
SI=1200SI=1200
So, Simple Interest, SI = Rs. 1200
Now, For Compound Interest,
R = 5/2% as compounded half yearly
n = number of periods = 2 × 3/2 = 3
So,
A=P(1+\frac{R}{100})^nA=P(1+
100
R
)
n
A=16000(1+\frac{\frac{5}{2}}{100})^3A=16000(1+
100
2
5
)
3
A=16000(\frac{200+5}{200})^3A=16000(
200
200+5
)
3
A=16000\times\frac{205}{200}\times\frac{205}{200}\times\frac{205}{200}A=16000×
200
205
×
200
205
×
200
205
A=16000\times\frac{205}{200}\times\frac{205}{200}\times\frac{205}{200}A=16000×
200
205
×
200
205
×
200
205
A = Rs. 17230.25
⇒ Compound Interest. CI = A - P = 17230.25 - 16000 = Rs. 1230.25
Thus, Difference Between interest = 1230.25 - 1200 = 30.25
Therefore, Difference between Simple Interest And Compound Interest is Rs. 30.25