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iogann1982 [59]
3 years ago
6

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

Mathematics
1 answer:
Sladkaya [172]3 years ago
3 0
Simple Interest:

I = P x r x t
I = 8000 x 0.15 x 2
I = 2400

Compound Interest:

A = P(e^rt)
where e is the Euclid’s constant
and A is the total amount with interest

A = 8000(e^0.15(2))
A = 10799 (rounded up)
Therefore compound interest is 2799.

The difference:
compound - simple = 2799 - 2400

Answer is rs 399.
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