Question

the difference between compound interest and simple interest on a sum of ₹ 50,000nfor 2yr. at 6.5% p.a is ____.
a) ₹201.125 b) ₹210.25 c) ₹211.25 d) ₹225.125​

Answer 1

Step-by-step explanation:

Compound interest = P(1+i)^n-1

Simple interest = P*I*t

where, P= 50000

i = 6.5/100= 0.065

t or n = 2 years

CI - SI

[P(1+i)-1] - [p*I*t]

[50000(1+0.065)^2-1] - [50000*0.065*2]

6711.25 - 6500

211.25 Ans.