Question

What will be the Simple interest an amount of Rs. 15000.00 @ 8% PAM 2. a 2 years ?
​

Answer 1

Solution!!

Principal (P) = Rs 15000

Rate of interest (R) = 8%

Time (T) = 3 years

Interest = (P × R × T)/100

Interest = (15000 × 8 × 3)/100

Interest = 150 × 8 × 3

Interest = Rs 3600

Simple interest = Rs 3600

_______________________________

Principal (P) = Rs 15000

Rate of interest (R) = 8%

Time (n) = 3 years

Amount = P(1 + (R/100))³

Here 3 is the time (n).

Amount = 15000(1 + (8/100))³

Amount = 15000(108/100)³

Amount = 15000 × (108/100) × (108/100) × (108/100)

Amount = Rs 18895.68

CI = Amount - Principal

CI = Rs 18895.68 - Rs 15000

CI = Rs 3895.68

Compound interest = Rs 3895.68

Simple interest = Rs 3600

Difference between them = Rs 3895.68 - Rs 3600

Difference between CI and SI = Rs 295.68