Question

what is the difference in the compound interest and the simple interest on rs. 50000 for 2 years at 20 pcpa?
1) 10000
2) 12000
3) 2000
4) 1000
plz give the step by step explanation
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Answer 1

Answer:

and the answer is option is 3)2000

Answer 2

The difference in the compound interest and the simple interest  = 2000

Given:

Rs 50000 for 2 years at 20 % per year.

To find:

The difference in the compound interest and the simple interest.

Formula used:

Simple interest = $\frac{PRT}{100}$

Final amount in compound interest =P $( 1+\frac{R}{100})^n$

Where P = Principle amount.

Explanation:

First we can simple interest for two year

         Simple interest  =  $\frac{PRT}{100}$

         Simple interest  = $\frac{50000 \times 20\times 2}{100}$

        Simple interest  = 20,000 rs

So total amount = 50,000+20,000

                           = 70,000 Rs

Amount in compound interest = P$( 1+\frac{R}{100})^n$

Amount in compound interest = 50,000$( 1+\frac{20}{100})^2$

Amount in compound interest = 72,000 Rs

So The difference in the compound interest and the simple interest

                                                      = 72,000 - 70,000

                                                      = 2,000 Rs

To learn more....

1)Find the amount and compound interest on rs 750 lent at compound interest of 12% per annum for one year , if the interest is payable half yearly.

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2)Find the compound interest on rupees 3200 at 2.5 p.a for 2 years ,compounded annually​.

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