Question

Please solve it guys​

Answer 1

Step-by-step explanation:

Question:-

Find the difference in the Simple Interest and Compound Interest on Rs. 625 for 2 years at the rate of 4% P.A

$\bf\underline{\underline{\red{Given:-}}}$

• Principal (P) = Rs.625

• Time (n) = 2 years

• Rate (r) = 4%

$\bf\underline{\underline{\blue{To\:Find:-}}}$

• The difference in the Simple Interest and Compound Interest.

$\bf\underline{\underline{\green{Solution:-}}}$

$\rm \leadsto Simple \: Interest = \dfrac{PTR}{100}$

Here:-

• P = Rs. 625 , R = 4% , T = 2 years

$\rm = \dfrac{ 625 \times 4 \times 2}{100}$

$\rm = \dfrac{5000}{100}$

$\rm = 50$

$\rm \dashrightarrow \underline{ \: \: \underline{ \: Simple\: Interest = Rs.50 \: } \: \: }$

Now, To find the Compound Interest , first we need to find Amount

$\rm \leadsto Amount= P\bigg(1 +\dfrac{r}{100}\bigg)^{n}$

Here:-

• P = Rs. 625, n = 2 years , r = 4%

$\rm = 625\times \bigg(1 +\dfrac{4}{100}\bigg)^{2}$

$\rm = 625\times \bigg(\dfrac{100+4}{100}\bigg)^{2}$

$\rm = 625\times \bigg(\dfrac{104}{100}\bigg)^{2}$

$\rm = 625\times \bigg(\dfrac{26}{25}\bigg)^{2}$

$\rm = 625\times \dfrac{26\times 26}{25\times 25}$

$\rm = 625\times \dfrac{676}{625}$

$\rm = \cancel{625} \times \dfrac{676}{\cancel{625}}$

$\rm =676$

$\rm Amount =676$

$\rm \leadsto Compound \: Interest = Amount - Principal$

$\rm = 676 - 625$

$\rm = 51$

$\rm \dashrightarrow \underline{ \: \: \underline{ \: Compound \: Interest = Rs.51 \: } \: \: }$

Now,

$\rm Compound \: Interest - Simple\: Interest$

$\rm = 51 - 50$

$\rm = 1$

The difference in Simple Interest and Compound Interest is Rs. 1