Question

The difference between simple interest and compound interest on rs 1200

Answer 1

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