Question

What is the difference between the compound interest and simple interest on Rs. 8000 at 5% per annum for 2 years ?
A) Rs. 280
B) Rs. 100
C) Rs. 180
D) no difference ​

Answer 1

Answer:

Step-by-step explanation:

C.I.

A=p[1+r/100]2

 = 8000[1+15/100]2

 = 8000[100+15/100]2

 = 8000[115/100]2

 = 8000* 115/100* 115/100

 = 10580

I = A - P

 = 10580 - 8000

 = 2580

S.I.

S.I. = P*R*T/100

     = 8000 * 15 * 2/100

     = 2400

Difference = C.I. - S.I.

                   = 2580 - 2400

                   = 180