Question

On a certain sum of money the simple interest for 2 years is rs.50 at the rate of 5%per anum .Find the difference in compound interest and simple interest

Answer 1

simple interest = 50 × 5% × 2/100

S I = 5 rupee

compound interest = Amount - principal

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

A = 50 (1+5/100)^2

A = 50 × 105 /100 ×105/100

A = 55.125 rupee