Question

what is the difference between simple and compound interest on 7300 @ 6% per annum in 2 years​

Answer 1

Answer:

Here principal = 7300 , rate = 6% time = 2 years , si = 7300*6*2/100 = 876, amount = 7300(1+6/100)^2 = 8202.28 so CI = 8202.28-7300 = 902.28

difference = 902.28-876 = 26.28  hope it will help you

Answer 2

Therefore the difference between Simple Interest and Compound Interest is Rs. 26.28/-

Given:

Principal amount = Rs. 7,300

Rate of Interest = 6%

Period = 2 years

To Find:

The difference between Simple Interest and Compound Interest.

Solution:

The given question is very simple and the solution is as shown below.

Given that,

Principal amount = P = Rs. 7,300

Rate of Interest = R = 6%

Period = T = 2 years

⇒ Simple interest = SI = (PTR) / 100 = ( 7,300 × 2 × 6 ) / 100

⇒ Simple interest = SI = 73 × 12

⇒ Simple interest = SI = Rs. 876

Now Compound Interest = CI = P ( 1 + R/100 $)^T$ - P

⇒ Compound Interest = CI = 7300 [ ( 1 +6/100 )² - 1 ]

⇒ Compound Interest = CI = 7300 ( 1.06² - 1 ) = 7300 ( 1.1236 - 1 ) = 7300 × 0.1236

⇒ Compound Interest = CI = Rs. 902.28

The difference between Simple interest and Compound Interest = CI - SI = 902.28 - 876 = 26.28

Therefore the difference between Simple Interest and Compound Interest is Rs. 26.28/-

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