What is the difference between compound interest and simple interest on Rupees 8000 at 15% per annum for 2 years?

Given : P = Rs. 8,000, R = 5%, T = 2 years
For simple interest,

S.I. = `[ "P" xx "R" xx "T"]/100`

= `[8,000 xx 5 xx 2]/100`

= Rs. 800

For compound interest,

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

`"A" = 8,000( 1 + 5/100 )^2`

= `8,000 xx 21/20 xx 21/20`

= Rs. 8,820

C.I. = A - P      = Rs. (8,820 - 8,000)

      = Rs. 820

Now, C.I. - S.I. = Rs. ( 820 - 800 ) = Rs. 20.
Thus, the difference between the compound interest and the simple interest is Rs. 20.

Calculate the difference between the compound interest and the simple interest on Rs. 8000 in three years and at 10% per annum.

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C.I.A=p[1+r/100]2  = 8000[1+15/100]2  = 8000[100+15/100]2  = 8000[115/100]2  = 8000* 115/100* 115/100  = 10580I = A - P  = 10580 - 8000  = 2580S.I.S.I. = P*R*T/100      = 8000 * 15 * 2/100      = 2400 Difference = C.I. - S.I.                    = 2580 - 2400

                    = 180

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Given : P = Rs. 8,000, R = 5%, T = 2 years
For simple interest,

S.I. = `[ "P" xx "R" xx "T"]/100`

= `[8,000 xx 5 xx 2]/100`

= Rs. 800

For compound interest,

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

`"A" = 8,000( 1 + 5/100 )^2`

= `8,000 xx 21/20 xx 21/20`

= Rs. 8,820

C.I. = A - P      = Rs. (8,820 - 8,000)

      = Rs. 820

Now, C.I. - S.I. = Rs. ( 820 - 800 ) = Rs. 20.
Thus, the difference between the compound interest and the simple interest is Rs. 20.

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No worries! We‘ve got your back. Try BYJU‘S free classes today!

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Calculate the difference between the compound interest and the simple interest on Rs. 8000 in three years and at 10% per annum.

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C.I.A=p[1+r/100]2  = 8000[1+15/100]2  = 8000[100+15/100]2  = 8000[115/100]2  = 8000* 115/100* 115/100  = 10580I = A - P  = 10580 - 8000  = 2580S.I.S.I. = P*R*T/100      = 8000 * 15 * 2/100      = 2400 Difference = C.I. - S.I.                    = 2580 - 2400

                    = 180

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