Question

The difference between the C.I. and S.I. calculated annually on ₹ 625 at 10 % per

Answer 1

Answer:

R0

Step-by-step explanation:

Given the following data;

Principal, P = R625

Time, t = 1 year

Rate, r = 10% = 10/100 = 0.1

To find compound interest;

$A = P(1 + \frac{r}{100})^{t}$

Substituting into the equation, we have;

$A = 625(1 + \frac{10}{100})^{1}$

$A = 625(1 + 0.1)$

$A = 625(1.1)$

A = 687.5

Therefore, C.I = A - P

C.I = 687.5 - 625

C.I = 62.5

To find the simple interest;

$S.I = \frac {PRT}{100}$

$S.I = \frac {625 *10*1}{100}$

$S.I = \frac {6250}{100}$

S.I = 62.5

Now to find the difference;

Difference = C.I - S.I

Difference = 62.5 - 62.5

Difference = R0