Question

What is the difference between the compound interest and simple interest on RS 8000 at 15% per annum for 2years ?

Answer 1

✬ Difference = Rs 248 ✬

Step-by-step explanation:

Given:

Principal (P) is Rs 8000.

Rate (R) is 10% per annum.

Time (T) is 3 years.

To Find:

What is the difference between Simple and compound interest ?

Solution: Here ,

P = Rs 8000

R = 10%

T = 3 years

Formula for S.I is

★ S.I = P \times× R \times× T/100 ★

⟹ 8000 \times× 10 \times× 3/100

⟹ 80 \times× 10 \times× 3

⟹ 2400

So, S.I is Rs 2400.

Now, for compound interest formula is

★ A = P ( 1 + R/100)^n ★

⟹ A = 8000 (1 + 10/100)³

⟹ 8000( 100 + 10/100)³

⟹ 8000 (110/100)³

⟹ 8000(11/10)³

⟹ 8000 \times× 1331/1000

⟹ 8 \times× 1331

⟹ 10648

∴ C.I = Amount – Principal

➮ C.I = Rs (10648 – 8000)

➮ Rs 2648

Then ,Difference between S.I and C.I is

=> C.I – S.I

=> 2648 – 2400

=> Rs 248