How to find amount when difference in simple and compound interest available
Answers
Answer:
Difference Between the Compound and Simple Interest
Sometimes you are given a situation and you have the option of repaying more it through compound interest or through simple interest. Obviously, you will choose simple interest because it is a cheaper option. Also, in compound interest, you are asked to pay the principal amount by levying interest on interest. But you would still need to determine the difference between the compound and simple interest. If the difference asked is for either two or three years than you can easily solve it through the formulas. Here are the formulas to the calculated difference in interests
Explanation:
Answer...!!!!
Difference Between the Compound and Simple Interest
Sometimes you are given a situation and you have the option of repaying more it through compound interest or through simple interest. Obviously, you will choose simple interest because it is a cheaper option. Also, in compound interest, you are asked to pay the principal amount by levying interest on interest. But you would still need to determine the difference between the compound and simple interest. If the difference asked is for either two or three years than you can easily solve it through the formulas. Here are the formulas to the calculated difference in interests.