Question

The difference between the   C I   compounded   annually and the SI  on Rs.625 at 10% pa for 1 Year is :​

Answer 1

Answer:

S.I = 2.5

Step-by-step explanation:

625×10×1/100

=6250/100

=625/10

=2/1 or 2.5

Answer 2

Answer:

Given :-

• A sum of Rs 625 at 10% p.a. for 1 year.

To Find :-

• What is the difference between compound interest annually and simple interest.

Formula Used :-

$\clubsuit$ Simple Interest or S.I Formula :

$\bigstar \: \: \: \: \sf\boxed{\bold{\pink{S.I =\: \dfrac{P \times r \times t}{100}}}}\: \: \: \: \bigstar$

$\clubsuit$ Amount formula when the interest is compounded annually :

$\bigstar \: \: \: \: \sf\boxed{\bold{\pink{A =\: P\bigg(1 + \dfrac{r}{100}\bigg)^n}}}\: \: \: \: \bigstar$

$\clubsuit$ Compound Interest or C.I Formula :

$\bigstar \: \: \: \: \sf\boxed{\bold{\pink{C.I =\: A - P}}}\: \: \: \: \bigstar$

Solution :-

✯ In case of simple interest or S.I :

Given :

• Principal = Rs 625
• Rate of Interest = 10% p.a.
• Time Period = 1 years

According to the question by using the formula we get,

$\implies \sf S.I =\: \dfrac{625 \times 10 \times 1}{100}$

$\implies \sf S.I =\: \dfrac{6250}{100}$

$\implies \sf\bold{\purple{S.I =\: Rs\: 62.50}}$

✯ In case of compound interest or C.I :-

First, we have to find the amount :

Given :

• Principal = Rs 625
• Rate of Interest = 10% p.a.
• Time Period = 1 years

According to the question by using the formula we get,

$\implies \sf A =\: 625\bigg(1 + \dfrac{10}{100}\bigg)^1$

$\implies \sf A =\: 625\bigg(\dfrac{110}{100}\bigg)^1$

$\implies \sf A =\: 625 \times \dfrac{110}{100}$

$\implies \sf A =\: \dfrac{68750}{100}$

$\implies \sf\bold{\blue{A =\: Rs\: 687.50}}$

Now, we have to find the compound interest :

Given :

• Amount = Rs 687.50
• Principal = Rs 625

According to the question by using the formula we get,

$\implies \sf C.I =\: Rs\: 687.50 - Rs\: 625$

$\implies \sf\bold{\purple{C.I =\: Rs\: 62.50}}$

✫ Now, we have to find the difference between the compound interest and simple interest :

Given :

• Compound Interest = Rs 62.50
• Simple Interest = Rs 62.50

According to the question by using the formula we get,

$\implies \sf\bold{Difference =\: C.I - S.I}$

$\implies \sf Difference =\: Rs\: 62.50 - Rs\: 62.50$

$\implies \sf\bold{\red{Difference =\: Rs\: 0}}$

$\therefore$ The difference between the compound interest and simple interest is Rs 0 .