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Calculate the Difference Between the Compound Interest and the Simple Interest on ₹ 7,500 in Two Years and at 8% per Annum.

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Question

Calculate the difference between the compound interest and the simple interest on ₹ 7,500 in two years and at 8% per annum.

Sum
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Solution

Principal (P) = ₹7500

Rate (R) =  8% p.a.

Period (T) = 2 years

∴ Simple interest =`"PRT"/100=(7500xx8xx2)/100`

= ₹1200

Interest for the first year =`(7500xx8xx1)/100`

= ₹600

∴ Amount at the end of first year = P + S.I.

= ₹7500 + ₹600

= ₹8100

Principal for the second year = ₹8100

∴ Interest for the second year =`(8100xx8xx1)/100`

= ₹648

∴ Total C.I. for 2 years = ₹600 + ₹648

= ₹1248

∴ Difference between C.I. and S.I. for 2 years

= ₹1248 − ₹1200

= ₹48

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Chapter 9: Interest - Exercise 9 (C) [Page 114]

APPEARS IN

Selina Concise Mathematics [English] Class 8 ICSE
Chapter 9 Interest
Exercise 9 (C) | Q 12 | Page 114

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