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Find the difference between smiple interest and compound interest on ₹ 4000 at 10% for 2 years |
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Answer» ution!! Principal (P) = Rs 4000 Rate of interest (R) = 10% Time (T) = 2 years Interest = (P × R × T)/100 Interest = (4000 × 10 × 2)/100 Interest = 40 × 10 × 2 Interest = Rs 800 Simple interest = Rs 800 _______________________________ Principal (P) = Rs 4000 Rate of interest (R) = 10% Time (N) = 2 years Amount = P(1 + (R/100))² Here 2 is the time (n). Amount = 4000(1 + (10/100))² Amount = 4000(110/100)² Amount = 4000(11/10)² Amount = 4000 × (11/10) × (11/10) Amount = 40 × 11 × 11 Amount = Rs 4840 CI = Amount - Principal CI = Rs 4840 - Rs 4000 CI = Rs 840 Compound interest = Rs 840 Simple interest = Rs 800 Difference between them = Rs 840 - Rs 800 Difference between CI and SI = Rs 40 |
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