Question

find the difference between the simple interest and the compound interest on rs 60000 at 10 per cent per annum for 3 and half years ​

Answer 1

Answer:

Given Rate of interest is r=10%=0.1

Principal Amount is A=6,000

Time is t=2 years

Interest is compounded yearly once ⟹n=1

Amount =P(1+nr)nt=6000×(1+0.1)2=7260

Interest is A−P=7260−6000=1260

Simple Interest is 1006000×10×2=1200

Difference between simple interest and compound interest is 1260−1200=60

Answer 2

Answer:

Answer

Given Rate of interest is r=10%=0.1

Principal Amount is A=6,000

Time is t=2 years

Interest is compounded yearly once ⟹n=1

Amount =P(1+

n

r

)

nt

=6000×(1+0.1)

2

=7260

Interest is A−P=7260−6000=1260

Simple Interest is

100

6000×10×2

=1200

Difference between simple interest and compound interest is 1260−1200=60