Question

Suresh deposits Rs 1,00,000 for two years at 8% interest compounded every year.

Manish deposits Rs 1,00,000 for two years at simple interest of 8%.

The difference in the amount that Suresh and Manish receive at the end of two years is​

Answer 1

Answer:

Step-by-step explanation:

Amount(based on compound interest) = P{1 + R/100}^n where n = time

Amount received by Suresh =

1,00,000 × ( 1 + 8/100)² =

1,16,640

Amount (based on simple interest) = (P × R × T)/100 + P

Amount received by Manish = (1,00,000 × 8 × 2)/100 + 1,00,000 =

16,000 + 1,00,000 = 1,16,000

The difference in the amount that Suresh and Manish receive at the end of two years is​:-

1,16,640 - 1,16,000 = 640

Hence, The difference in the amount that Suresh and Manish receive at the end of two years is​ Rs640.

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