Q5 of 89 Page 14

Find the difference between the compound interest and simple interest. On a sum of Rs. 50,000 at 10% per annum for 2 years.

Given,


Principal = Rs.50000


Rate = 10% per annum


Time = 2 years


Hence,


=


Compound interest =


=


So,


Difference between compound interest and simple interest = Rs.(10500 – 10000) = Rs.500


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