Advertisements
Advertisements
Question
Find the difference between compound interest and simple interest on Rs. 8,000 in 2 years and at 5% per annum.
Advertisements
Solution
Given : P = Rs. 8,000, R = 5%, T = 2 years
For simple interest,
S.I. = `[ "P" xx "R" xx "T"]/100`
= `[8,000 xx 5 xx 2]/100`
= Rs. 800
For compound interest,
`"A" = "P"( 1 + r/100 )^n`
`"A" = 8,000( 1 + 5/100 )^2`
= `8,000 xx 21/20 xx 21/20`
= Rs. 8,820
C.I. = A - P
= Rs. (8,820 - 8,000)
= Rs. 820
Now, C.I. - S.I. = Rs. ( 820 - 800 ) = Rs. 20.
Thus, the difference between the compound interest and the simple interest is Rs. 20.
APPEARS IN
RELATED QUESTIONS
Find the amount and the compound interest on Rs. 12,000 in 3 years at 5% compounded annually.
Calculate the amount of Rs. 15,000 is lent at compound interest for 2 years and the rates for the successive years are 8% and 10% respectively.
Calculate the compound interest accrued on Rs. 6,000 in 3 years, compounded yearly, if the rates for the successive years are 5%, 8% and 10% respectively.
On what sum of money will the compound interest for 2 years at 5% per annum amount to Rs. 768.75?
On a certain sum, the compound interest in 2 years amounts to Rs. 4,240. If the rate of interest for the successive years is 10% and 15% respectively, find the sum.
At what rate percent compound interest, does a sum of money become 1.44 times of itself in 2 years?
At what rate percent will a sum of Rs. 4,000 yield Rs.1,324 as compound interest in 3 years?
In how many years will Rs. 7,000 amount to Rs. 9,317 at 10% per annum compound interest?
The simple interest on a certain sum of money and at 10% per annum is Rs. 6,000 in 2 years, Find:
- the sum.
- the amount due to the end of 3 years and at the same rate of interest compounded annually.
- the compound interest earned in 3 years.
Find the amount and the compound interest payable annually on the following :
Rs.32000 for 2 years at 7`(1)/(2)`% per annum.
