Question

find the simple interest on ₹2500 for 2 years at 10% per annum. if the bank pays compound interest, compounded annually, what is the difference between the interest earned in both cases​

Answer 1

Answer:

2525

Step-by-step explanation:

simple interest = p×r×n/100

therefore

p = 2500

r = 10%

n = 2years

I = 2500 × 10 × 2/100

= 25 × 10 × 2

= 500

compound interest = p ( 1 + r/100) raised to n

p = 2500

r = 10%

n = 2

therefore

a = 2500 ( 1 + 10/100) raised to 2

= 2500 (11/10) raised to 2

= 2500 × 121/100

= 25 × 121

= 3025

c.i - s.i

3025 - 500

= 2525

please mark me brainliest

hope it helps