Question

find the difference between the simple interest and compound interest on ₹16000 for 3/2 years at 5% per annum, compound interest being reckoned half yearly.

Answer 1

Answer:

Step-by-step explanation:

P = ₹16000, rate = 5%

Time 3/ 2 yr = 1.5yr

S.i = p × r × t / 100

= 16000 × 5 × 1.5/ 100

= 800 ×1.5 = ₹1200

For compound interest

t = 1.5 yr = 3 half years

rate = 5% p.a = 2.5% half yearly

Amount = p ( 1 + r/ 100)^3

= 16000 ( 1 + 2.5/100)^3

= ₹17230.25

Compoud interest

= 17230.25 - 16000 = 1230.25

Difference = C.I - S.I

= 1230.25 - 1200 = ₹30.25

Answer: difference = ₹30.25