Question

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

Answer 1

Answer:

The difference between simple and compound interest is =7.90 Rs

Step-by-step explanation:

Simple -Interest

$= \frac{P\: \times R \times T}{100} \\ \\ SI= \frac{1625 \times 4 \times 3}{100} \\ \\ = \:195 \: Rs$

P: principal amount

R= rate

T= time

Compound interest:

$CI = P { \bigg(1 + \frac{R}{100} } \bigg)^{T} - P \\ \\ = 1625{ \bigg(1 + \frac{4}{100} } \bigg)^{3} - 1625 \\ \\ = 1827.90 - 1625 \\ \\ CI= 202.90$

Difference between Compound interest and simple interest:

= 202.90-195

= 7.90 Rs

Answer 2

Answer:

The difference between simple and compound interest is Rs.7.90

To find:

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

Solution:

Simple interest = $\frac{P\times n\times r}{100}$

P = 1625, n = 3, r = 4%

SI = $\frac{(1625 \times 3 \times 4)}{100}$= 195 Rs

Compound interest = $P {(1 +\frac{R}{100})}^3 - P$

= 1625 ${(1 +\frac{4}{100})}^3$– 1625

= 1827.9 – 1625

= 202.9

SI – CI = 202.9 – 195 = Rs.7.90

The difference between simple and compound interest is Rs.7.90