Question
Find the difference between the compound interest and the simple interest on 32,000 at 10% p.a. for 4 years.
Answer: Option B
Answer: (b)Using Rule 1,S.I. = $\text"Principal × Time × Rate"/100$= ${32000 × 4 × 10}/100$ = Rs.12800C.I. = P$[(1 + R/100)^4 - 1]$= 32000$[(1 + 10/100)^4 - 1]$= 32000 $[(1.1)^4$ - 1]= 32000 (1.4641 - 1)= 32000 × 0.4641= Rs.14851.2Required difference= 14851.2 - 12800 = Rs.2051.2
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Answer: (b)Using Rule 1,S.I. = $\text"Principal × Time × Rate"/100$= ${32000 × 4 × 10}/100$ = Rs.12800C.I. = P$[(1 + R/100)^4 - 1]$= 32000$[(1 + 10/100)^4 - 1]$= 32000 $[(1.1)^4$ - 1]= 32000 (1.4641 - 1)= 32000 × 0.4641= Rs.14851.2Required difference= 14851.2 - 12800 = Rs.2051.2
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