The difference between simple interest and compound interest on rs 1200
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Explanation:
simple interest =prt/100
compound interest =amount -principal
both are interest but simple interest is rate per and in compound interest rate per annum
simple interest is used easily and mostly in villages
principal=1200
rate=5%
time =1year
simple interest =1200*5*1/100
=60
wher compound interest=p(1+r/100)n
=1200(1+5/100)1
1200(21/20)
=1200*21/20
=1260
1260-1200=60
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