Question

He difference between compound interest and simple interest on a sum for two years at 8% per annum, where the interest is compounded annually is rs.16. if the interest were compounded half yearly , the difference in two interests would be nearly

Answer 1

let the sum be rs x.
time = 't' or 'n' = 2 years
rate % =r% = 8%
now first we will calculate simple interest,
simple interest,
sum × t × r /100
= x × 2 × 8 /100
= 16x/100
or, 0.16x