*What is the difference between amounts for 2 years and 3 years for Rs

1.	What is the difference between amounts for 2 years and 3 years for Rs. 500 at 10% compound interest?1️⃣ ₹.665.502️⃣ ₹ 603️⃣ ₹ 60.504️⃣ ₹ 605
Answer» Answer : 3️⃣ ₹60.50 Explanation : Compound interest for the FIRST 2 years. Where, rate = 10% principal = ₹500 time = 2 years. We know that, AMOUNT : p(1 + r/100)ⁿ Substituting given values : → 500(1 + 10/100)² → 500(1 + 1/10)² → 500(11/10)² → 500(1.1)² → 500(1.21) → 605 ∴ Amount calculated for the first two years is ₹105. Now, Calculating C. I. for the next 3 years at the same rate and principal. → 500(1 + 10/100)³ → 500(11/10)³ → 500(1.331) → 665.5 ∴ Amount calculated for 3 years is ₹665.5 Hence, the difference between the two amounts is : → 665.5 - 605 → 60.5 Required answer : ₹60.5

What is the difference between amounts for 2 years and 3 years for Rs. 500 at 10% compound interest?1️⃣ ₹.665.502️⃣ ₹ 603️⃣ ₹ 60.504️⃣ ₹ 605

Answer»

Answer :

3️⃣ ₹60.50

Explanation :

Compound interest for the FIRST 2 years.

Where,

We know that,

Substituting given values :

→ 500(1 + 10/100)²

→ 500(1 + 1/10)²

→ 500(11/10)²

→ 500(1.1)²

→ 500(1.21)

→ 605

∴ Amount calculated for the first two years is ₹105.

Now,

Calculating C. I. for the next 3 years at the same rate and principal.

→ 500(1 + 10/100)³

→ 500(11/10)³

→ 500(1.331)

→ 665.5

∴ Amount calculated for 3 years is ₹665.5

Hence, the difference between the two amounts is :

→ 665.5 - 605

→ 60.5

Required answer : ₹60.5