Question

the difference between simple interest and compound interest on rupees 6600 for 1 year at the rate of 24% p.a compounded anually will be.

Answer 1

SI =

100

P×R×T

SI =

100

2400×2×5

=240

Compound interest:

Interest for first year =

100

2400×5×1

=120

Amount after first year =2400+120=2520

Interest for second year =

100

2520×5×1

=126

Amount after first year =2520+126=2646

Hence compound interest =2646−2400=246

Difference between CI and SI =246−240=6