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Find the difference between the simple interest and compound interest2 years at 5% per annum, compound interest being reckoned annually.3. Find the compound interest on 3125 for 3 years if the rates of interest |
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Answer» Answer: If the RATE of interest PER annum is the same under both simple interest and compound interest then for 2 years, compound interest (CI) - simple interest (SI) = Simple interest for 1 year on “Simple interest for ONE year”. Step-by-step explanation: For , N=3years R=5 % We have S.I.= 100 PNR
=Rs600 => 100 P×3×5
=600 =>P=Rs4,000 And on interest being compounded for 2 years, Amount=P(1+ 100 R
) N =4,000×(1+ 100 5
) 3 =4,000×1.05 3 =Rs4,630.50 So, C.I.=A−P=Rs4,630.50=Rs4,000=Rs630 |
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