Question

The difference between compound and simple interest at 5% per annum for 4 years on
20,000 is
(a) 250
(b) 277
(c) 300
(d) 310​

Answer 1

In case of simple interest

P=?

T=4yr

R=5%

P*r*t/100

P*5*4/100

Si=p*5

In case of ci

Amount =p(1+r/100)time

A=p(1+5/100)4

A=p(105/100)4

A=p*105/100*105/100*105/100*105/100

A=p*194481/8000.........................................