Question

what is the difference between compound interest and simple interest on rupees 8000 at 15% per annum for 2 years ​

Answer 1

Answer:

Principal amount = 8000

Interest for first year = 15% of 8000 = 1200

So new principal after 1 st year = 8000+1200 = 9200

Interest for second year = 15% of 9200 = 1380

So new principal after 2 nd year = 9200+1380 = 10580

interest for 4 months(1/3 years) = 5% of 10580 = 529

So interest after 2 years 4 months = 1200+1380+529 = 3109