Question

The difference in the simple interest and compound interest on principal of rs 10,00,000 in 3 yrs at 4% annum is

Answer 1

SOLUTION

Let us find the S.I. And C.I separately

1. SIMPLE INTEREST

$\frac{pnr}{100} \\ = \frac{1000000 \times 3 \times 12 \times 4 }{100} \\ = rs.(1440000 - 1000000) = rs.440000$

2.COMPOUND INTEREST

$p(1 + \frac{r}{100}) ^{n} \\ = 1000000 \times {( \frac{104}{100} )}^{3} \\ =rs. 1124864$

Difference,

$1124864 - 440000 = rs.684864$

Answer 2

Answer:

Step-by-step explanation:

principle = (interest x 100) / (time x rate)

= Rs. (100 x 80)/(4 x 2) = Rs. 1000

∴ C.I. =Rs.[{1000 x (1 + 4/100)2 - 1000}]

= Rs. 81.60

Hope it helps you...