Question

On a certain principal, simple interest amounts to₹2000 in 2 years at the rate of 10% per annum. What will be the difference in the amount of interest if the same is compounded on annual basis?

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Answer 1

Answer:

Difference between SI AND CI IS=20rupees

Answer 2

Answer:

The answer is 100

Step-by-step explanation:

We have the simple interest that is 2000. We are going to find the principal amount using the formula.

S.I. = P x R x T / 100

2000 = p ( 10 x 2 / 100)

2000 = p (5)

p = 2000 x 5 = 10,000

Now, we have the principal amount, we will find the compound interest for 2 years.

Compound Interest

a = p (1 + r / 100)^t

a = 10,000 ( 1 + 10 / 100)^2

a = 10,000 ( 11/100 x 11/100 )

a = 10,000 ( 121/100 )

a = 12100

C.I. = 12100 - 10000 = 2100

Difference in the amount of interest in C.I. and S.I. is 2100 - 2000 = 100