Question

what is the difference between the simple interest and compound interest on RS.5000 at 10% per annum for 3 years?

Answer 1

If we do simple interest then Amont will be Rs 6500 while in C.I. amount will be Rs 6655.

Answer 2

Si =prt÷100
In which p is principal and r is rate per annum and t is time. In this way si is calculated. Compound interest is that in which final amount -original amount.
5000×10×3÷100=1500.
Compound interest
5000×10×3÷100=1500then we will plus this 1500 in 5000 and then new si=6500×10×3÷100=1950 and then plus this number in 6500 +1950=8450and now u can see the difference between si and compound interest