Question

What is use of simple interest and compound interest in daily life???need it asap

Answer 1

in most banks they have FD(fixed deposit)

eg you put amount of 50000 for interest of 5% annually , how much amount will be after the year for simple interest and compound interest

ans) simple interest

P*I*T=5000*5/100*1=RS 250

maturity amount will be 5250

compound interest

P(1+r)^t

5000*(1+5/100)^!

5000(1+5/100)

50+250=300

maturity amout 5300