Find the difference between the simple interest and compound interest on 4800
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\(Compound\ interest - Simple\ interest = P{\left( {1 + \frac{r}{{100}}} \right)^t} - p - \frac{(P \ \times \ r \ \times \ t)}{100}\) Show
Where r is Rate of Interest Calculation: Apply the above formula \(30.72 = 4800{\left( {1 + \dfrac{r}{{100}}} \right)^2} - 4800 - \dfrac{{4800 \ \times \ r\ \times 2}}{{100}}\) Given Principal (P) = Rs 4800 Rate (R) = 5% p.a. Period (n) = 2 years Therefore, S.I. = PRT / 100 = (4800 × 5 × 2) / 100 We get, = Rs 480 And when interest is compounded annually Amount (A) = P {1 + (R / 100)}n = Rs 4800 {1 + (5 / 100)}2 = Rs 4800 × (21 / 20) × (21 / 20) We get, = Rs 5292 Hence, Compound interest = Amount – Principal = Rs 5292 – Rs 4800 = Rs 492 Now, The difference in compound interest and simple interest = Rs 492 – Rs 480 = Rs 12 How to find the difference between simple interest and compound interest?What is the Difference between Simple and Compound Interest?. What is the difference between the compound interest and simple interest on ₹ 8000 at 15% per annum for 2 years?Detailed Solution
The difference between compound interest compounded annually and simple interest on a certain sum at a rate of 15% per annum for 2 years is ₹1,944.
What is the difference between the compound interest and simple interest on Rupees 8000 at 5% per annum for 2 years?Amount=P(1+r100)n=8000(1+5100)2=8000×(1+120)2=8000×(2120)2=8000×441400=20×441=8820∴CI=Amount−Principal=8820−8000=820.
What is the difference between the compound interest and simple interest on 5000?The difference between compound interest and simple interest at the same rate on Rs. 5000 for 2 years is Rs. 72.
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