Question

what is the difference in simple interest and compound interest on 15000 for 2 years at 6%p.a compound annual ly​

Answer 1

SOLUTION:-

Given:

•Principal,(P)= Rs.15000

•Rate, (R)= 6%

•Time,(T)= 2 years

To find:

The difference between simple interest & compound Interest.

Explanation:

Firstly, we find Simple Interest;

Formula:

$</u><u>S</u><u>.</u><u>I</u><u>. = \frac{</u><u>P</u><u> \times </u><u>R</u><u>\times </u><u>T</u><u>}{100} \\ \\ = > </u><u>S</u><u>.</u><u>I</u><u>. = \frac{15000 \times 6 \times 2 }{100} \\ \\ = > </u><u>S.</u><u>I</u><u>.</u><u> = </u><u>R</u><u>s.1800$

&

Compound Interest:

Amount - Principal

$A = P(1 + \frac{R}{100} ) {}^{n} \\ \\ = > 15000(1 + \frac{6}{100} ) {}^{2} \\ \\ = > 15000(1 + \frac{3}{50} ) {}^{2} \\ \\ = >15000( \frac{50 + 3}{50} ) {}^{2} \\ \\ = > 15000( \frac{53}{50} ) {}^{2} \\ \\ = > 15000 \times \frac{53}{50} \times \frac{53}{50} \\ \\ = > Rs.(6 \times 53 \times 53) \\ \\ = > Rs.16854$

Now,

C.I.= A -P

C.I.= Rs.16854 - Rs.15000

C.I.= Rs.1854

Difference of the Interest:

=) Rs.(1854 - 1800)

=) Rs.54

Thus,

The difference between simple interest & compound Interest is Rs.54.

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