Find the difference between simple interest and compound interest on Rs 2000/- at

12pcpa for 2 years

12pcpa for 2 years

Find the difference between simple interest and compound interest on Rs 2000/- at

12pcpa for 2 years

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Step-by-step explanation:Here, P = ₹ 2000; R = 5 % ; N = 2 years

A=P(1+

R

100

)N =2000(1+

5

100

)2 =2000(

105

100

)2 =2000(

21

20

)2 =2205 Rupees∴ Compound Interest after 2 years,I = Amount – Principal =2205-2000 =205 Rupees

Hence, Amount = ₹ 2205 and Compound interest = ₹ 205.

(2) Here, P = ₹ 5000; R = 8 % ; N = 3 years

A=P(1+

R

100

)N =5000(1+

8

100

)3 =5000(

108

100

)3 =5000(

27

25

)3 =6298.56 Rupees∴ Compound Interest after 3 years,I = Amount – Principal =6298.56-5000 =1298.56 Rupees

Hence, Amount = ₹ 6298.56 and Compound interest = ₹ 1298.56

(3) Here, P = ₹ 4000; R = 7.5 % ; N = 2 years

A=P(1+

R

100

)N =4000(1+

7.5

100

)2 =4000(1+

75

1000

)2 =4000(

1075

1000

)2 =4000(

43

40

)2 =4622.50 Rupees∴ Compound Interest after 2 years,I = Amount – Principal =4622.50-4000 =622.50 Rupees

Hence, Amount = ₹ 4622.50 and Compound interest = ₹ 622.50