Question

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

Answer 1

p = ₹8000
R = 15%
and, T= 2yrs
so, SI = P×R×T/100
Sl = ₹2400
and,for CI
P = ₹8000
R=15%
and,T = 1 year
so,SI = p×r×t/100
SI = ₹1200
and,A= SI + P
= 1200+8000
A = ₹9200
and,A of 1st year = P of 2nd year
so now P = ₹9200
and,R = 15%
andT = 1year
so,SI = p×r×t/100
= ₹1380
and,A = SI +P
= 1320+9200
so,A = ₹10,520
and,CI = A-P
CI = 10,520-8000
CI = ₹2,520
and ,their difference = CI - SI
= 2,520 - 2400
= ₹120 ans