Question

Find the differences between simple interest and compound interest on Rs.10000 at 12% per annum for 2 years.

Answer 1

Solution :-

→ Principal = Rs.10000

→ Rate = 12% per annum.

→ Time = 2 years.

→ Difference between CI and SI for 2 years = (Principal * (Rate)²) / (100)²

Putting all values we get,

→ D = (10000 * 12²) / (100 * 100

→ D = (10000 * 144) / (10000)

→ D = Rs.144 (Ans.)

Hence, the differences between simple interest and compound intereest is Rs.144.