Question

What willbe the difference between simple interest compound interest 10% per annum on sum of 1000 after 4 year?

Answer 1

P = Rs. 1000

Time = 4years

rate = 10p.a.

SI = p×r×t/100
= 1000×10×4/100
= Rs.400

$ci \: = p \times (1 + \frac{r}{100} ) {}^{t} - p \\ \: \: \: \: = 1000 \times (1 + \frac{10}{100} ) {}^{4 } - 1000$
= Rs. 1000 ×(110/100)^4 - 1000

= Rs. (1464.10 -1000)

= Rs. 464.10


Hence,difference between CI and SI

= Rs. (464.10 - 400)

= Rs. 64.10



hope,this helps.....