Question

The difference between the C.I. and S.I. calculated annually on ₹ 625 at 10 % per

annum for 1 year is:

Answer 1

R0

Explanation:

Given the following data;

Principal, P = R625

Time, t = 1 year

Rate, r = 10% = 10/100 = 0.1

To find compound interest;

`A = P(1 + (r)/(100))^(t)`

Substituting into the equation, we have;

`A = 625(1 + (10)/(100))^(1)`

`A = 625(1 + 0.1)`

`A = 625(1.1)`

A = 687.5

Therefore, C.I = A - P

C.I = 687.5 - 625

C.I = 62.5

To find the simple interest;

`S.I = \frac {PRT}{100}`

`S.I = \frac {625 *10*1}{100}`

`S.I = \frac {6250}{100}`

S.I = 62.5

Now to find the difference;

Difference = C.I - S.I

Difference = 62.5 - 62.5

Difference = R0