Find the difference between the simple interest and compound interest on Rs 16000 for 1 and half years at 5%per annum, compound interest being reckoned half yearly

Asked by Muskanwadhwa11 | 8th Aug, 2019, 04:01: PM

Expert Answer:

begin mathsize 16px style For space Simple space Interest colon
straight P space equals space Rs. space 16 comma 000 space space comma space straight R space equals space 5 percent sign space and space straight T space equals 1 1 half space equals 3 over 2 space yrs
Simple space Interest space equals fraction numerator straight P cross times straight R cross times straight N over denominator 100 end fraction space
Substitute space the space values space and space after space doing space the space calculations comma space we space get
SI thin space equals space Rs. space 1200

For space Compound space Interest colon
straight P space equals space Rs. space 16 comma 000 space space comma space straight R space equals space 5 over 2 percent sign space space equals 2.5 percent sign space and space straight n space equals space 3 space space left parenthesis Compounding space has space to space be space done space 3 space times right parenthesis
straight A equals space straight P open parentheses 1 space plus space straight R over 100 close parentheses to the power of straight n space and space straight C. straight I thin space equals space straight P space minus space straight A space
Substitute space the space values space and space after space doing space the space calculations comma space we space get
CI thin space equals space Rs. space 1230.25
straight C. straight I space minus space straight S. straight I space equals space 1230.25 space minus space 1200 space equals space Rs. space 30.25 end style

Answered by Yasmeen Khan | 8th Aug, 2019, 04:57: PM