Question

What is the difference between the simple interest and compound interest on Rs.7300 at the rate of 6% per annum in 2 years

Answer 1

shortcut:

ci-s.i=p*r^2/100^2

       =7300*6*6/(100*100)

        = 26.28/-

Answer 2

Given :

To find :

What is the difference between the simple interest and compound interest on Rs.7300 at the rate of 6% per annum in 2 years

Solution:

Case 1:

Principal = 7300

Rate = 6%

Time = 2 years

$SI = \frac{P \times T \times R}{100}\\Si=\frac{7300 \times 2 \times 6}{100}\\SI=876$

Case 2:

Principal = Rs.7300

Rate of interest = 6%

Time = 2 years

$A= P(1+r)^t\\A=7300(1+0.06)^2$

A=8202.28

Compound interest = 8202.28  - 7300=902.28

Difference between ci and si = 902.28-876=26.28

Hence The the difference between the simple interest and compound interest on Rs.7300 at the rate of 6% per annum in 2 years is 26.28