Question

the difference in the simple interest and compound interest on a principal amount of rs.10,00,000 in 3 years at 4% per annum is

Answer 1

hope you got it if any doubt ask

Answer 2

Answer:

Rs.295136

Step-by-step explanation:

Principal = Rs.10,00,000

Time = 3 years

Rate of interest = 4% = 0.04

$A=P(1+r)^t$

$A=1000000(1+0.04)^3$

$A=1124864$

Compound interest = Amount - Principal = 1124864-1000000=Rs.124864

Simple interest = $\frac{P\times R\times T}{100}$

where R is in percent

Simple interest = $\frac{1000000 \times 14 \times 3}{100}$

Simple interest = $420000$

Difference between simple interest and compound interest = 420000-124864=Rs.295136

Hence Difference between simple interest and compound interest is Rs.295136