Question

Quiz: 7/30
What is the difference in simple interest between year 1 and 2 if Rs. 5000 is borrowed at 4%.
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Answer 1

Answer:

quiz accepted.

If it is one year it will be=200

and

if it will be two year then it will be=400

Answer 2

Answer:

The difference in the simple interest of 2 year and 1 year is Rs 200

Step-by-step explanation:

• Simple interest is given by formula

      $I=\frac{PRT}{100}$

       Where I is the interest, P is the principle amount, R is the rate of  

       Interest in %, T is the time

• The Principle is Rs 5000
• Rate of interest =4%

Step 1 of 1:

• For 1 year, the interest is

       $I=\frac{PRT}{100}\\ I=\frac{5000*4*1}{100}\\\\I=\frac{20000}{100}\\\\I=200$

• For 2 year, the interest is

       $I=\frac{PRT}{100}\\ I=\frac{5000*4*2}{100}\\\\I=\frac{40000}{100}\\\\I=400$

• The difference in simple interest is 400-200=200

Conclusion:

The difference in the simple interest of 2 year and 1 year is Rs 200