The difference between compound interest and simple interest on an amount of Rs 7500 for 2 years

hi welcome to this video and the question is calculate the difference between the compound interest and simple interest on rupees 7500 in 2 years and at 8% per annum this question which is to calculate the difference between the compound interest and simple interest for 2 years so first of all we will calculate the simple interest and then the component and after that will take the difference so that is first calculate simple interest sofa the simple interest that is first flight the given condition so here principal is equal to rupees 7500 rate of interest is equal to 8% per annum and time that is is equal to 2 years now latest apply the formula of simple interest

so as we know that it is equal to p into a into it over 100 now put all the given values in this formula we will get a size equal to 7,500 into our that is it into Ti that is to over 100 can cancel this 2020 and simplifying this you will get a side equal to rupees 1200 so this is the value of SBI love letters calculate the value of compound interest for 2 years and for the compound interest latest write the given conditions so here also principal is equal to rupees 7500 rate of interest charge is equal to 8% per annum again and the value of n is equal to

two letters applied the formula of amount because we don't have any direct formula to calculate the compound interest first will calculate the amount and after that will calculate the compound interest so amount we know that it is equal to PN bracket 1 + over 100 to the power and not all the given value so amount is equal to be that is 7,500 intricate oneplus are that is date over 100 to the power to further simplify this will get amount is equal to 7500 into 10 8 over 100 into 108 over 119 cancel these two zeros with these two zeros this will give you amount is equal to 75 into 10 8

into 108 over 100 now for the simplifying this will get a is equal to 87 4800 over 130 equal to rupees 8748 this is the value of amount now from this value of amount will calculate the value of component so we know that compound interest is equal to a Maut - principal now putting the values we will get will get 8748 - 7500 this will be equal to rupees 1248 this is the value of compound interest now we just to take the difference between these two values difference that

is the equal to now obviously the value of components is more than the simple tasvir take a difference like this CI - as this will give us 1248 - 1200 should be equal to rupees 48 the final answer is that is the difference between the simple interest and compound interest is equal to rupees 48 I hope you have understood thank you

Calculate the difference between the compound interest and the simple interest on ₹ 7,500 in two years and at 8% per annum.

Solution

Principal (P) = ₹7500

Rate (R) =  8% p.a.

Period (T) = 2 years

∴ Simple interest =`"PRT"/100=(7500xx8xx2)/100`

= ₹1200

Interest for the first year =`(7500xx8xx1)/100`

= ₹600

∴ Amount at the end of first year = P + S.I.

= ₹7500 + ₹600

= ₹8100

Principal for the second year = ₹8100

∴ Interest for the second year =`(8100xx8xx1)/100`

= ₹648

∴ Total C.I. for 2 years = ₹600 + ₹648

= ₹1248

∴ Difference between C.I. and S.I. for 2 years

= ₹1248 − ₹1200

= ₹48

Concept: Concept of Compound Interest

  Is there an error in this question or solution?

APPEARS IN

1. Rs. 612
2. Rs. 650
3. Rs. 800
4. Rs. 832

Answer (Detailed Solution Below)

Option 1 : Rs. 612

\(A\; = \;P\;{\left( {\;1\; + \frac{r}{{100}}\;} \right)^t}\)

Where A is the amount at the end of time t,

P is the Principal,

t is time,

r is rate

Given,

Rs. 7500 is compounded for two years at the rate of 4% annual interest.

\(A = 7500{\left( {1 + \frac{4}{{100}}} \right)^2}\)

⇒ A = 7500 × 1.042

⇒ A = Rs. 8112

CI = A – P

∴ CI = Rs. (8112 – 7500) = Rs. 612

Let's discuss the concepts related to Interest and Compound Interest. Explore more from Quantitative Aptitude here. Learn now!

If the difference between C.I and S.I on Rs. 7500 for two years is Rs. 12 at the same rate of interest per annum. Then what is the rate of interest?

1. 4%
2. 6%
3. 8%
4. 10%

Answer (Detailed Solution Below)

Option 1 : 4%

Free

200 Questions 200 Marks 180 Mins

Given:-

Difference between C.I and S.I = Rs. 12

Sum = Rs. 7500

Time = 2 years

Rate same in C.I as well as S.I

Concept:-

For 2 years,

Difference between C.I and S.I = P(R/100)2

Calculation:-

⇒ Difference = 7500 × (R/100)2

⇒ 12 = 7500 × (R/100)2

⇒ (12/7500) = (R/100)2

⇒ R2 = (12 × 10000)/7500

⇒ R2 = 16

⇒ R = √16

⇒ R = 4% 

∴ Rate of interest is 4 %

Last updated on Sep 26, 2022

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Let's discuss the concepts related to Interest and Simple and Compound Both. Explore more from Quantitative Aptitude here. Learn now!