1.

What is the difference betweensimple interest and compoundinterest for 2 years at the rate of 5%on Rs.1000?​

Answer»

Step-by-step explanation:

GIVEN ;

P = 1000

T = 2 years

R = 5 %

Let's find SI first;

SI = P × R × T / 100

SI = 1000 × 5 × 2 / 100

SI = 1000 × 10 / 100

SI = 10000 / 100

SI = 100

Let's find CI then ;

Given ;

P = 1000

T = 2 years

R = 5 %

A = P (1 + R / 100)^T

A = 1000 ( 1 + 5 / 100 ) ^ 2

A = 1000 ( 105 /100 ) ^ 2

A = 1000 × 105/100 × 105/100

A = 1102.5

CI = Amount - PRINCIPAL

CI = 1102.5 - 1000

CI = 102.5

The difference between CI and SI

Difference = 102.5 - 100

Difference = 2.5

Hope it HELPS!!


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