Question

what is the difference between simple interest and compound interest on RS 10000 for 2 years at 6.5% per annum
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Answer 1

Answer:

P=10000

R=6.5%

T=2y

SI =P×T×R/100

SI=10000×2×65/1000

SI=1300

CI ON 1st YEAR =10000×65/1000

=650

P of 2nd year = 10000+650= 10650

CI ON 2nd YEAR = 10650×65/1000

= 692.25

Total CI =650+692.25=1342.25

Difference between CI and SI = 1342.25-1300=42.25