Question

principal -3000; rate -8%; time- 2 years.find amount on si; amount on ci and difference.

Answer 1

amount on si for 2years

A'= p(1+nr) = p(1+2r)

amount on ci for 2 years

A =p(1+r)ⁿ

=p(1+r)² =p(1+2r+r²)

A-A' = p(1+2r+r²-1-2r) = pr²

= 3000×0.08×0.08

= 19.2