Question

find the different between simple interest and compound interest on rs.30000 for 3 years at 10% per annum,when the interest is compounded annually interest

Answer 1

Answer:

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SI = PRT/100

SI = 30000 × 3 × 10/100

SI = 300 × 3 × 10

SI = 9000

Now

Amount = P × (1 + R/100)ⁿ

Amount = 30,000 × (1 + 10/100)³

Amount = 30,000 × (100 + 10/100)³

Amount = 30,000 × (110/100)³

Amount = 30,000 × (11/10)³

Amount = 30,000 × 11/10 × 11/10 × 11/10

Amount = 30 × 11 × 11 × 11

Amount = 39,930

Now

CI = A - P

CI = 39,930 - 30,000

CI = 9,930

Difference = 9930 - 9000

Difference = 930