Question

Find the difference between the C.I. and S.I. on ₹ 15000 at 6% per annum in 2 years.

Answer 1

Given:

• Principal ( P = ₹ 15000 )
• Rate of interest ( R = 6% ) per annum
• Time ( T = 2 ) years

Step-wise calculation:

Step 1: Calculate Simple Interest (S.I.):

`S.I. = (P xx R xx T)/100`

= `(15000 xx 6 xx 2)/100`

= ₹ 1800

Step 2: Calculate Compound Interest (C.I.) using the formula:

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

= `15000(1 + 6/100)^2`

= 15000 × (1.06)²

=  15000 × 1.1236

= ₹ 16854

C.I. = A – P

= 16854 – 15000

= ₹ 1854

Step 3: Find the difference between C.I. and S.I. 

Difference = C.I. – S.I.

= 1854 – 1800

= ₹ 54