Question

what is difference between compund interest and simple interest on 8000 rupees at 15 percent per annum​

Answer 1

Step-by-step explanation:

Answer

We have,

P=Rs.8000,T=2 years,R=5%

We know that,

SI=100P×R×T

or, SI=1008000×5×2

or, SI=Rs.800

We know that,

A=CI+P=P(1+100R)T

or, CI+8000=8000(1+1005)2

or, CI+8000=8000(1+201)2

or, CI+8000=8000(2021)2

or, CI+8000=8820

or, CI=Rs.820

Therefore, the required difference

CI−SI=820−800

=Rs.20