Question

What is the difference between the CI (Compounded annually ) and SI on rupees 10000for 2 years at 4%p.a.

Answer 1

simple interest = 4×2×10000÷100=800 rs.

compound intrest=10000(1+4/100)^2

=10816 rs.

intrest=10816-10000=816 rs.

diff.=816-800=16 rs.