Question

find the difference between the simple interest and compound interest on rs 12500 for 3 years at 12% p.a compounded annually

Answer 1

si= (p×r×t)/100
(12500×3×12)/100= 375×12=4500

A=p(1-r/100)^t
a=12500(1+12/100)^3
a=12500[(100+12)/100]^3
a=12500×(112/100)^3
a=12500×112/100×112/100×112/100
a=125×112×28/25×28/25
a=(112×28×28)/5
a=112×28×5.6
a= 17561.60
ci= A-p
ci= 17561.60-12500
ci=5061.60
difference = 5061.60-4500.0=561.60