Q11 of 94 Page 29

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

Capital = 6,400

Rate of interest = 6.25%


Time = 2years


Compound interest


Amount = 6,400


= 6,400


= 7,225


Compound interest = amount – principle


= 7,225 – 6,400 = 825


Simple interest =


=


= 800


The difference between compound and simple interest = 825 - 800


= 25


More from this chapter

All 94 →
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.

 10

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

 13

Sujatha borrows Rs. 12,500 at 12% per annum for 3 years at simple interest and Radhika borrows the same amount for the same period at 10% per annum compounded annually. Who pays more interest and by how much?