What is the difference between the
compound interest, when interest is
compounded 5-monthly, and the simple interest on a sum of Rs. 12,000 for
5/4 years at 12% per annum?
Answers
Answered by
4
Answer:
Rs.91.50
Step-by-step explanation:
Simple Interest = p * r/100 * t = 12000 * 12/100 * 5/4 = 1800
Compound Interest
A = p ( 1 + r/100)^ n
= 12000 ( 1 + 5/100)^3 = 13891.5
Compound Interest = 13891.5 - 12000 = 1891.50
Difference between CI and SI = 1891.5 - 1800 = 91.5
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