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

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

1 thought on “What is the difference between compound interests for 2 years and 3 years for Rs. 500 at 10% rate compounded annually?​”

  1. Step-by-step explanation:

    Let the sum be Rs.100

    Computation of compound interest:

    Prinicpal =Rs.100

    R=10% per annum and n=2 years.

    Amount=Rs.

    100×(1+

    100

    10

    )

    2

    =Rs.

    100×(

    2

    11

    )

    2

    =Rs.121

    Computation of simple interest:

    Prinicpal =Rs.100

    R=10% and Time =2 years.

    ∴S.I.=Rs.(

    100

    100×10×2

    )=Rs.20

    Thus, difference in C.I. and S.I.=Rs.(21−20)=Re.1

    Now, if difference between C.I and S.I. is Re.1, Then Sum =Rs.100

    If difference between C.I. and S.I. is Rs.500, Then Sum =Rs.(100×500)=Rs.50000

    helpful to you

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