Question

Shortcut formula for difference between si and ci for 2 years

Answer 1

Answer:

$C.I-S.I \:for\: 2\: years=\frac{Pr^2}{(100)^2}$

Step-by-step explanation:

Formula used:

compound Interest$=P(1+\frac{r}{100})^n-P$

Simple Interest$= \frac{P\;n\:r}{100}$

Now

C.I-S.I for 2 years

$=P(1+\frac{r}{100})^2-P-\frac{2Pr}{100}\\\\=P[1+\frac{r^2}{(100)^2}+\frac{2r}{100}]-P-\frac{2Pr}{100}\\\\=P+\frac{Pr^2}{(100)^2}+\frac{2Pr}{100}]-P-\frac{2Pr}{100} \\\\=\frac{Pr^2}{(100)^2}$