The difference between simple interest and compound interest for a sum of Rs. 12,000 lent
at 10% per annum in 2 years, is
Rs.80
Rs.90
Rs.120
Rs.100
Explanation:
Principal=Rs.12,000
Rate of interest=10%
years=2years
SI=$\dfrac{P\times N\times R}{100}$
=$\dfrac{12,000\times 2\times 10 }{100}$
=$\dfrac{240000}{100}$
=2400
CI=$A=P(1+\dfrac{r}{100})^ n-P$
$=12,000(1+\dfrac{10}{100})^2-12,000$
$=12,000(1+0.1)^2-12,000$
$=12,000(1.1)^2-12,000$
$=12,000\times 1.21-12,000$
$=14,520-12,000$
CI=Rs.2520
Diff btw CI and SI=2520-2400
=Rs.120
Principal=Rs.12,000
Rate of interest=10%
years=2years
SI=$\dfrac{P\times N\times R}{100}$
=$\dfrac{12,000\times 2\times 10 }{100}$
=$\dfrac{240000}{100}$
=2400
CI=$A=P(1+\dfrac{r}{100})^ n-P$
$=12,000(1+\dfrac{10}{100})^2-12,000$
$=12,000(1+0.1)^2-12,000$
$=12,000(1.1)^2-12,000$
$=12,000\times 1.21-12,000$
$=14,520-12,000$
CI=Rs.2520
Diff btw CI and SI=2520-2400
=Rs.120