what is the difference between simple interest and compund interest on ts 10000 for 3 yrs at 20% p.ainterset
Answers
Answer:
SI
P=Rs 10000
R=20%
T=3 years
SI=?
Since,SI=PRT/100
=Rs 10000×3×20/100
=Rs 6000
CI
For 1st year
P=Rs 10000
R=20%
T=1 year
SI=?
Since SI=PRT/100
=Rs 10000×1×20/100
=Rs 2000
Since,A=P+SI
=Rs 10000+Rs 2000
=Rs 12000
For 2nd year
P=Rs 12000
R=20%
T=1 year
SI=?
Since,SI=PRT/100
=Rs 12000×20×1/100
=Rs 2400
A=P+SI
=Rs 12000+Rs 2400
=Rs 14400
For 3rd year
P=Rs 14400
R=20%
T=1 year
SI=?
Since,SI=PRT/100
=14400×20×1/100
=Rs 2880
Since,A=P+SI
=Rs 14400+Rs 2880
=Rs 17280
Now,Since CI=Final amount-Orignal principal
=Rs 17280-Rs 10000
=Rs 7280
Now, Difference=CI-SI
=Rs 7280-Rs 6000
=Rs 1280
Answer:
Simple interest = P × R × T ÷ 100
10000 × 20 × 3 ÷ 100
Simple interest = ₹6000
For compound interest procedure is given below
P = ₹10000 R = 20 % T = 1 year
Simple interest = P × R × T ÷ 100
10000 × 20 × 1 ÷ 100 = ₹2000
Amount at the end of first year = Simple interest + principle = 10000 + 2000 = ₹12000
P = ₹12000 R 20% T = 1 year
Simple interest = P × R × T ÷ 100
12000 × 20 × 1 ÷ 100 = ₹2400
Amount at the end of second year = Simple interest + principle = 2400 + 12000 = ₹14400
P = ₹14400 R = 20% T = 1 year
Simple interest = P × R × T ÷ 100
14400 × 20 × 1 ÷ 100 = ₹2880
Amount at the end of third year = Simple interest + principle = 14400 + 2880 = ₹17280
( compound interest is for three years so I have done it three times accordingly )
Compound interest = Amount - original principle
= 17280 - 10000 = ₹7280
difference between compound interest and simple interest = 7280 - 6000 = ₹1280