Question

the difference between the simple interest and the compound interest on rupees 12504 three years at 10% per annum is​

Answer 1

Required Answer:-

Given:

• Principal = ₹12504
• Rate of Interest = ₹10%
• Time Period = 3 years.

To Find:

• The difference between simple interest and compound interest.

Solution:

Simple Interest is calculated by using the given formula,

➡ S.I. = PRT/100

So, Simple Interest will be,

= ₹ 12504 × 10 × 3/100

= ₹ 12504 × 3/10

= ₹ 3751.2

★ Hence, Simple Interest earned in three years is ₹ 3751.2

Now,

A = P(1 + R/100)ᵀ

Where A is the amount.

So, Amount will be,

= ₹ 12504 × (1 + 10/100)³

= ₹ 12504 × (11/10)³

= ₹ 16642.82

Therefore,

➡ CI = A - P

➡ CI = 16642.82 - 12504

➡ CI = 4138.82

Therefore, difference between CI and SI will be,

= ₹4138.82 - ₹3751.2

= ₹ 387.62

★ Hence, difference between S.I. and C.I. is ₹387.62