Question

Find the difference between the simple interest and the compound interest on Rs.10,000 for 3 years at the rate of 10% p.a.

Answer 1

Answer:

Simple interest:

I = PTR/100

P- PRINCIPLE

T- TIME PERIOD

R-RATE OF INTEREST

I = INTEREST

Now, I = 10000*3*10/100 = 3000

Compound Interest Formula:

A = P{1+R/100}^N

Here,

A= AMOUNT

N= NO OF TIMES TO BE COMPOUNDED

In our case, N=3

Now, A=10000{1+10/100}^3= 10000(1+0.1)^3

= 10000(1.1)^3= 10000*1.331=13310.

Now the difference is 13310–13000= 310$

I hope you got your answer.

Answer 2

1st = 13310

2nd = 13000

difference= 13310 - 13000

= 310