find the difference between CI and SIon a sum of Rs 1000 at the rate of 10%p.a for 2 years

Asked by Manju | 31st Dec, 2016, 06:48: PM

Expert Answer:

begin mathsize 16px style CI equals straight A minus straight P
space space space space equals straight P open parentheses 1 plus straight R over 100 close parentheses to the power of straight N minus straight P
space space space space equals straight P open square brackets open parentheses 1 plus straight R over 100 close parentheses to the power of straight N minus 1 close square brackets
space space space space equals 1000 open square brackets open parentheses 1 plus 10 over 100 close parentheses squared minus 1 close square brackets
space space space space equals 1000 open square brackets open parentheses 11 over 10 close parentheses squared minus 1 close square brackets equals 1000 cross times 21 over 100 equals 210
SI equals PNR over 100 equals fraction numerator 1000 cross times 2 cross times 10 over denominator 100 end fraction equals 200
Difference equals 210 minus 200 equals 10 end style

Answered by Rebecca Fernandes | 31st Dec, 2016, 10:17: PM