Question

Find the difference between the simple interest and compound interest on RS 2500 for 2 years at 4% per annum, compound interest being reckoned semi annually.​

Answer 1

Explanation:

Given P=Rs.2,500,r=4%, N=2

CI=P(1+

100

R

)

2

−P=2,500(1+

100

4

)

2

−2,500=2,500(

100

2

104

2

−1)=

10,000

2,500×816

=Rs.204

SI=

100

P×T×R

=

100

2,500×4×2

=Rs.200

Difference=Rs.4