Question

The difference between compound
interest, compounded annually and simple
interest at the end of two years on Rs.
6,40,000 is Rs. 14,400. What is the simple
interest for the first year?
​

Answer 1

Answer:

Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as "interest on interest

Step-by-step explanation:

The second way to calculate compound interest is to use a fixed formula. The compound interest formula is ((P*(1+i)^n) - P), where P is the principal, i is the annual interest rate, and n is the number of periods.

S.I.= \dfrac{P \times R \times T}{100}