Question

what will be the difference between simple and compound interest at 10% per annum on a sum of ₹1000 after 4 years
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Answer 1

Answer:

HERE IS YOUR ANSWER.

Step-by-step explanation:

Answer: Principal sum = ₹1000, interest rate = 10%p.a. , time= 4yrs. Simple interest= P.R.T/100 = 1000×10×4/100 = 400. Compound interest= P{1+ R/100}™ - P =1000{1+10/1000}^4-1000 = 1464.1 - 1000 = 464.1 Thus difference in interests= 464.1 - 400 = ₹64.1.