what is the difference between amount for two years and three years for rupees 500 at 10 rate compound interest
Answers
Answer:
The difference between amount for two years and three years is Rs 60.50.
Step-by-step explanation:
Given that:
Principal = Rs 500
Rate of interest = 10% per annum
To Find:
Difference between amount for two years and three years.
Formula used:
Amount in compound interest.
A = P(1 + R/100)ᵀ
Where,
A = Amount
P = Principal
R = Rate of interest
T = Time
Finding the amount in two years:
⟶ A = 500(1 + 10/100)²
⟶ A = 500(1 + 0.1)²
⟶ A = 500(1.1)²
⟶ A = 500 × 1.1 × 1.1
⟶ A = 605
∴ Amount in two years = Rs 605
Finding the amount in three years:
⟶ A = 500(1 + 10/100)³
⟶ A = 500(1 + 0.1)³
⟶ A = 500(1.1)³
⟶ A = 500 × 1.1 × 1.1 × 1.1
⟶ A = 665.50
∴ Amount in three years = Rs 665.50
Finding difference between amount for two years and three years:
⇒ Difference = Rs 665.50 - Rs 605
⇒ Difference = Rs 60.50
∴ Difference between amount for two years and three years = Rs 60.50
Answer:
The difference between amount for two years and three years is Rs 60.50.
Step-by-step explanation:
Given that:
Principal = Rs 500
Rate of interest = 10% per annum
To Find:
Difference between amount for two years and three years.
Formula used:
Amount in compound interest.
A = P(1 + R/100)ᵀ
Where,
A = Amount
P = Principal
R = Rate of interest
T = Time
Finding the amount in two years:
⟶ A = 500(1 + 10/100)²
⟶ A = 500(1 + 0.1)²
⟶ A = 500(1.1)²
⟶ A = 500 × 1.1 × 1.1
⟶ A = 605
∴ Amount in two years = Rs 605
Finding the amount in three years:
⟶ A = 500(1 + 10/100)³
⟶ A = 500(1 + 0.1)³
⟶ A = 500(1.1)³
⟶ A = 500 × 1.1 × 1.1 × 1.1
⟶ A = 665.50
∴ Amount in three years = Rs 665.50
Finding difference between amount for two years and three years:
⇒ Difference = Rs 665.50 - Rs 605
⇒ Difference = Rs 60.50
∴ Difference between amount for two years and three years = Rs 60.50