What is the difference between
compound interests for 2 years
and 3 years for Rs. 500 at 10%
rate compounded annual

1 thought on “What is the difference between<br />compound interests for 2 years<br />and 3 years for Rs. 500 at 10%<br />rate compounded annual”

1. Step-by-step explanation:

   Question:–

   What will be in the difference between compound interest for 2 years and 3 years for ₹500 at 10% rate compounded annually ?

   • ₹105

   • ₹60.5

   • ₹ 505.50

   • ₹165.50

   Answer:–

   Given :–

   • The principal is ₹500.

   • The rate is 10% per annum.

   • The time is 2 years and 3 years.

   To find :–

   Difference between compound interest of the above amount.

   Process :–

   Compound Interest for 1st case:–

   P = ₹500

   R (r) = 10%

   T (n) = 2 years

   [tex]∴CI = P(1+ \frac{r}{100} {)}^{n} \\ \\ ⇒CI = 500 (1 + \frac{10}{100} {)}^{2} \\ \\ ⇒CI = 500 ( \frac{110}{100} {)}^{2} \\ \\ ⇒CI = 500× \frac{110}{100} × \frac{110}{100} \\ \\ ⇒CI = ₹605[/tex]

   Compound Interest for 2nd case:–

   P = ₹500

   R (r) = 10%

   T (n) = 3 years

   [tex]∴ CI = P (1+ \frac{r}{100} {)}^{n} \\ \\ ⇒CI = 500 (1+ \frac{10}{100} {)}^{3} \\ \\ ⇒CI = 500 ( \frac{110}{100} {)}^{3} \\ \\ ⇒CI = 500 × \frac{110}{100} × \frac{110}{100} \times \frac{110}{100} \\ \\ ⇒CI = ₹665.5[/tex]

   Difference between Interests:–

   = ₹( 665.5 – 605 )

   = ₹ 60.5 (Ans)

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   Hope it helps you…

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