Question

what is the difference between the simple and the compound interest amount at 5% per annum for 2 years on a principal of RS 20000​

Answer 1

Given:

5% per annum for 2 years on a principal of Rs. 20000

To find:

The difference between the simple and the compound interest

Solution:

The principal, P = Rs. 20000

The rate of interest, R = 5% p.a.

The no. of years, n = 2 years

The formula to calculate the difference between the C.I. and S.I. for 2 years is as follows:

$\boxed{\bold{Difference\:_2\:_y_e_a_r_s = \frac{PR^2}{100^2} }}$

Now, on substituting the given values of P & R in the above formula, we get

$Difference\:_2\:_y_e_a_r_s = \frac{20000\times 5^2}{100^2} = \frac{20000 \times 25}{100 \times 100} = 2 \times 25 = \bold{50}$

Thus, the difference between the simple and the compound interest amount at 5% per annum for 2 years on a principal of Rs. 20000 is →

Rs. 50.

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Answer 2

Answer:

50

Step-by-step explanation:

principal = 20000

rate=5%

time=2years

so,

A=P(1+R/100)^2

=20000×105/100×105/100

=22050

C.I=A-P

=22050-20000

=2050

Now,

S.I=P×R×T/100

=20000×5×2/100

=2000

So,

C. I - S. I = 2050 - 2000

=₹ 50