Question

Find the difference in simple interest
and compound interest on 2000 for
2 years at 20% per annum.​

Answer 1

Step-by-step explanation:

When time is 2 years than

Difference of CI and SI = P[

100

R

2

]

D = 2000 (

100

8

)(

100

8

) =

10

128

= 12.8 = Rs 13

Answer 2

Difference between simple interest and compound interest is Rs. 80

Step-by-step explanation:

GIVEN

Principal = ₹2000

Rate = 20℅

Time = 2 years

___________________________

TO FIND

Difference between simple interest and compound interest

___________________________

SIMPLE INTEREST

We know that,

Simple Interest = Principal × Rate × Time / 100

Simple Interest = 2000 × 20 × 2 / 100

Simple Interest = 80000 / 100

Simple Interest = 800

Simple Interest = Rs. 800

___________________________

COMPOUND INTEREST

We know that,

$Compound \: Interest = Principal \times ( 1 + \dfrac {r}{100} )^{t} - Principal$

$Compound \: Interest = 2000 \times ( 1 + \dfrac {20}{100} )^{2} - 2000$

$Compound \: Interest = 2000 \times \dfrac {120}{100} ^{2} - 2000$

$Compound \: Interest = 2000 \times \dfrac {120}{100} \times \dfrac {120}{100} - 2000$

$Compound \: Interest = 2000 \times 1.2 \times 1.2 - 2000$

$Compound \: Interest = 2880 - 2000$

tex] Compound \: Interest = 880 [/tex]

tex] \bf { Compound \: Interest = Rs. \: 880 } [/tex]

___________________________

DIFFERENCE

Difference = Compound Interest - Simple Interest

Difference = 880 - 800

Difference = 80

Difference = Rs. 80

Difference between simple interest and compound interest is Rs. 80