Question

Solve this plz question no 6 and which one is greater why

Answer 1

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$\underline\bold{\huge{ANSWER \: :}}$

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6] (a) GIVEN INFORMATIONS :

(i) P = Rs. 20,000

(ii) n = 2 years

(iii) r = 10%

Using the formula, we get :

C. I. = P [(1+r/100)^n - 1]

=> C. I. = 20000 [(1+10/100)²-1]

=> C. I. = 20000 [(11/10)²-1]

=> C. I. = 20000 [(121/100)-1]

=> C. I. = 20000 × (21/100)

=> C. I. = Rs. 4200

So, C. I. = Rs. 4200

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6] (b) GIVEN INFORMATIONS :

(i) P = Rs. 20,000

(ii) t = 2 years

(iii) r = 10%

Using the formula, we get :

S. I. = Prt/100

=> S. I = (20000×2×10)/100

=> S. I. = Rs. 4000

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◼ Obviously the compound interest (Rs. 4200) is greater than the simple interest (Rs. 4000) on Rs. 20,000 for 2 years @ 10% per annum.


◼ Now, The difference between these two interests will be = Rs. (4200-4000) = Rs. 200 [REQUIRED ANSWER.]

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