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# Find the Difference Between the Compound Interest and the Simple Interest in 2 Years on Rs 5,000 at 8% P.A. Compounded Annually. - Mathematics

Sum

Find the difference between the compound interest and the simple interest in 2 years on Rs 5,000 at 8% p.a. compounded annually.

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#### Solution

Here P = Rs 5000 · r = 8 %  t = 2years

For simple interest:

S.I. = ("P" xx "r" xx "t")/100

S.I. = Rs (5000 xx 8 xx 2)/100

S.I. = Rs 800

For compound interest:

"A" = "P" (1 + "r"/100)^"n"

A = Rs 5000 (1 + 8/100)^2

A = Rs 5000 xx 108/100 xx 108/100

A= Rs 5,832

C.l. = A - P

C.l. = Rs (5832 -5,000)

C.l. = Rs 832
The difference in the compound interest and the simple interest

= Rs (832 - 800)

= Rs 32.

Is there an error in this question or solution?
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#### APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 1 Compound Interest
Exercise 1.4 | Q 7 | Page 13
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