Question

The difference between compound interest and simple interest on Rs. 2500 for 2 years at 4% per annum is :

Answer 1

S.I. =PTR/100
2500×2×4÷100
= 200
C.I. = P(1+R/100)^{N} - 2500
= 2500(1+4/100)² -2500
= 2500 × 104/100 × 104/100 - 2500
= 2704 - 2500
= 204
∴ DIFFERENCE IS 204