Find the difference between the simple interest and compound interest on 4000 for 1 year at 10% pa
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In case of compound interest,
P = Rs. 4000
T = 1 year
R = 10% pa
Amount = P (1+r/100)^n
= 4000(1+10/100)^1
= 4000(110/100)^1
= Rs. 4400
Therefore, C.I.= A-P
= 4400 - 4000
= Rs.400
In case of simple interest,
P = Rs. 4000
T = 1 year
R = 10 % pa
S.I. = P×T×R/100
= 4000×1×10/100
= Rs. 400
We can see that the compound interest and the simple interest are same.
Therefore, the difference between compound interest and simple interest (Rs. 400 - Rs. 400) is Rs.0
Hope, it helps you.
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