Q10 of 94 Page 29

Find the difference between simple interest and compound interest on Rs. 2,400 at 2 years at 5% per annum compounded annually.

Principle – 2,400

Interest – 5%


Time – 2 years


Compound interest


Amount = 24,000


= 24,00


= 2,646


Compound interest = amount – principle


= 2,646 – 2,400 = 246


Simple interest =


=


= 240


The difference between compound and simple interest = 246 -240


= 6


More from this chapter

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8

Vicky borrowed Rs. 26,400 from a bank to buy a scooter at the rate of 15% p.a. compounded yearly. What amount will he pay at the end of 2 years and 4 months to clear the loan?

 9

Arif took a loan of Rs. 80,000 from a bank. If the rate of interest is 10% p. a., find the difference in amounts he would be paying after 11/2 years if the interest is

(i) compounded annually and


(ii) compounded half - yearly.

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Find the difference between simple interest and compound interest on Rs. 6,400 for 2 years at 6 1/4% p. a. compounded annually.

 12

The difference between C. I. and S. I. for 2 years on a sum of money lent at 5% p.a. is Rs. 5. Find the sum of money lent.