Find the difference between the simple interest and compound interest on Rs.2500 for 2 years at 4 per cent per annum , compound intrest being reckoned semi-annually

Asked by jodhabai7867 | 24th Oct, 2018, 09:56: PM

Expert Answer:

begin mathsize 16px style Simple space Interest space equals space PRN over 100 space equals space fraction numerator 2500 space cross times space 4 space cross times 2 over denominator 100 end fraction equals space Rs. space 200
Compound space Interest colon
straight A space equals space straight P open square brackets 1 space plus space straight R over 100 close square brackets to the power of straight n space
Here space straight n space equals space 2 space years space equals space 4 space half space years
and space straight R space equals space 4 percent sign space straight p. straight a. space equals space 2 percent sign space per space half space year
Substitute space the space values comma space we space get
straight A space equals space Rs. space 2706. space 0804 space
CI thin space equals space straight A space minus space straight P space equals space Rs. space 206. space 0804

Compound space Interest space minus space Simple space Interest space equals space 206.0804 space minus space 200 space equals space Rs. space 6. space 08 end style

Answered by Yasmeen Khan | 25th Oct, 2018, 12:08: PM

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