Find the different between the compound interest (compounded annuallly) and the interest on Rs2000 For 3 years at the rate of 8% per annum...

Asked by guptaarti827352 | 16th Jan, 2019, 11:20: AM

Expert Answer:

 
Here R = 8% , N = 3 years and P =Rs. 2000
 
Simple Interest = begin mathsize 16px style fraction numerator straight P space cross times space straight R space cross times straight N space over denominator 100 end fraction equals space fraction numerator 2000 space cross times space 8 space cross times space 3 over denominator 100 end fraction space equals space Rs. space 480 end style
 
 
Compound Interest:
 
A = begin mathsize 16px style straight P space open parentheses 1 space plus space straight R over 100 close parentheses to the power of straight N equals space 2000 open parentheses 1 space plus space 8 over 100 close parentheses cubed space equals space 2000 space open parentheses 108 over 100 close parentheses cubed space equals space 2519.424 end style
 
Compound Interest = A - P = 519.424
 
 
Compound Interest - Simple Interest = 519.424 - 480 = Rs. 39.424

Answered by Yasmeen Khan | 16th Jan, 2019, 04:31: PM