Question

Using formula, Calculate the difference between compound (4) interest and simple interest on Rs 15,000 in 2 years at 6% per annum.

Answer 1

Answer:

54

Step-by-step explanation:

Given:

Principle = (P) = 15,000

Time = 2

Rate = 6%

Required to find:

Difference between simple intrest and compound intrest

Solution:-

Simple intrest = P × I × T

SI = 15,000 × 2 × 6% = 1,800

Compound intrest = P[(1+I)ⁿ-1]

CI = 15000[(1+0.06)²-1]

CI = 15000[(1.06)²-1]           [(1.06)²-1]   = 0.1236

CI = 15000 × 0.1236

CI = 1,854

Difference = 1,854 - 1800 = 54