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Question

Find the difference between the simple interest and the compound interest on Rs 5000 for 2 years at 9% per annum.

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Solution

Principal (p) = Rs. 5000Rate (R) = 9% p.a.Time (n) = 2 years S.I=PRT100=5000×9×2100=Rs. 900Now amount at C.I = P(1+R100)n=Rs.5000(1+9100)2= Rs. 5000×109100×109100= Rs. 118812=Rs. 5940.50 C.I = AP = Rs. 5940.50Rs. 5000= Rs. 5940.505000=Rs. 940.50 Difference between C.I. and S.I= Rs. 940.50Rs. 900=Rs. 40.50


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