Advertisements
Advertisements
Question
Find the difference between Compound Interest and Simple Interest on Rs 45,000 at 12% per annum for 5 years.
Advertisements
Solution
Principal (P) = ₹ 45000
Rate of interest (R) = 12% per annum
Time period (T) = 5 year
Simple interest, `SI = (P xx R xx T)/100`
= `(45000 xx 12 xx 5)/100`
= 450 × 60
= ₹ 27000
∵ Compound interest, CI = A – P
Where, `A = P(1 + R/100)^T`
`A = 45000(1 + 12/100)^5`
= `45000(28/25)^5`
= `45000 xx 28/25 xx 28/25 xx 28/25 xx 28/25 xx 28/25`
= `(45000 xx 17210368)/9765625`
= 45000 × 1.76
= ₹ 79200
∴ Compound interest, CI = ₹ 79200 – ₹ 45000 = ₹ 34200
∴ Difference between SI and CI = ₹ 34200 – ₹ 27000 = ₹ 7200
APPEARS IN
RELATED QUESTIONS
Find the compound interest at the rate of 5% per annum for 3 years on that principal which in 3 years at the rate of 5% per annum gives Rs 1200 as simple interest.
Rachana borrowed a certain sum at the rate of 15% per annum. If she paid at the end of two years Rs 1290 as interest compounded annually, find the sum she borrowed.
The present population of a town is 28000. If it increases at the rate of 5% per annum, what will be its population after 2 years?
A certain sum amounts to Rs. 5,292 in two years and Rs. 5,556.60 in three years, interest being compounded annually. Find : the rate of interest.
A man borrows Rs.10,000 at 10% compound interest compounded yearly. At the end of each year, he pays back 30% of the sum borrowed. How much money is left unpaid just after the second year ?
Find the sum on which the difference between the simple interest and compound interest at the rate of 8% per annum compounded annually would be Rs. 64 in 2 years.
The annual rate of growth in population of a town is 10%. If its present population is 26620, then the population 3 years ago was _________
Find the compound interest for `2 1/2` years on ₹ 4000 at 10% p.a, if the interest is compounded yearly
Find the C.I. on ₹ 15000 for 3 years if the rates of interest are 15%, 20% and 25% for the I, II and III years respectively
A sum is taken for two years at 16% p.a. If interest is compounded after every three months, the number of times for which interest is charged in 2 years is ______.
