Question

The difference between simple & compound interest on an amount at r%

p.a. after one year is -----------.


A) Zero
B) One
C) 100
D) 10​

Answer 1

Answer:

p.a. after one year is 100

Answer 2

The difference between SI & CI on an amount at r% p.a. after one year is zero.

Option A is correct.

Given:

• The difference between simple & compound interest on an amount at r% p.a. after one year is -----------.

To find:

• Fill in the blank.
• A) Zero
• B) One
• C) 100
• D) 10

Solution:

Formula to be used:

1. Simply interest: $\bf SI= \frac{P \times R \times T}{100}$
2. Compound Interest:$\bf CI= P\left(1 + \frac{R}{100}\right)^{ T}-P$

Step 1:

In simple interest; after every year interest will be calculated on principle amount.

In compound Interest; Interest will be calculated on sum of principle amount and interest.

so,

After first(one) year both the interest are same.

Thus,

Difference between both are zero.

Step 2:

Let us take an example.

P: 1000

r=5%

t= 1 year.

$SI = \frac{1000 \times 5 \times 1}{100}$

or

$SI= 50\: Rs.$

$CI= 1000\left(1 + \frac{5}{100} \right)^{1} - 1000$

or

$CI= 1000 \times \frac{105}{100} - 1000$

or

$CI = 1050 - 1000$

or

$CI= 50\: Rs.$

Thus,

Difference of CI and SI after 1 year is

$CI-SI = 50 - 50$

or

$\bf \red{ CI-SI =0 }$

Thus,

The difference between SI and CI on an amount at r% p.a. after one year is zero.

Option A is correct.

Learn more:

1) The difference between simple and compound interest on Rs.1625 for 3 years at 4% per annum in rupees is?

https://brainly.in/question/12195578

2) Find compound interest on Rs 6250 at 8% p.a. for 2 years.

https://brainly.in/question/14854001