Question

Find the different between compound interest and simple interest on ₹6000 for 5 years,rate10% p. a.,where the interest in compounded annually. ​

Answer 1

Answer:

The compound interest on Rs. 6000 at 10% per annum for one year ,compounded half-yearly is =6000×(1+

2×100

100

)

2

−6000

=6000×

20

21

×

20

21

−6000

=6615−6000=615.

So the compound interest is Rs. 615.