Question

If P = 3000, R = 8% p.a., T=2-years, find the total amount to be paid if the interest is
calculated by both methods. Also, calculate the difference in the simple and compound
interest.​

Answer 1

Answer:

SI=480

CI=499.2

SI&CI DIFFERENCE 19.2

Step-by-step explanation:

SI=P×r×t

SI=3000×8%×2=480

CI=P[(1+i)² - 1]

CI=3000(1.08)² - 1

CI=499.2

CI & SI For 2 Yrs

P(i)²=3000(0.08)²=19.2