Question

What is the difference between simple interest and compound intrest on

Rs. 1000 for 2 years at 5% P.a. (Compounded yearly)​

Answer 1

mark it as brain list

Answer 2

we should find SI and CI first

SI

P=rs1000

R=5%

T=2yrs

SI=PTR/100

=1000×5×2/100

=100

CI

P=rs1000

R=5%

T=2yrs

A=P(1+R/100)^2

=1000(1+5/100)^2

=1000(21/20)^2

=1102.5

CI=P-A

=1000-1102.5

=rs102.5

difference=SI-CI

=100-102.5

=2.5