Question

Let us calculate the difference between the compound interest and simple interest on rs 12000 for 2years, at 7.5% interest per annum.​

Answer 1

Step-by-step explanation:

Refer to the Attachment❤

Answer 2

• Principal (P) = Rs. 12000

• Time (t) = 2 years

• Rate (R) = 7.5%

__________ [ GIVEN ]

• We have to find the difference between compound interest and simple interest.

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» Compound Interest = P $\bigg(1 \: + \: \dfrac{R}{n} \bigg)^{T}$

Put the known values in above formula

→ 12000 $\bigg(1 \: + \: \dfrac{7.5}{100} \bigg)^{2}$

→ 12000 $\bigg(\dfrac{107.5}{100} \bigg)^{2}$

→ 12000 (1.075)²

→ 12000 (1.155625)

→ 13867.50

→ 13867.50 - 12000 [For 2 years]

→ Rs. 1867.5 (Compound Interest)

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» Simple Interest = $\dfrac{P\:\times\:R\:\times\:T}{100}$

Put the known values in above formula

→ $\dfrac{12000\:\times\:7.5\:\times\:2}{100}$

→ $\dfrac{12000\:\times\:75\:\times\:2}{1000}$

→ 12 × 75 × 2

→ 24 × 75

→ Rs. 1800 (Simple Interest)

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Now..

The difference between compound interest and simple interest is..

→ Compound Interest - Simple Interest

→ 1867.5 - 1800

→ Rs. 67.5

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Rs. 67.5 is the difference between compound interest and simple interest.

_________ [ ANSWER ]

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