The difference between simple interest and compound interest on an afo

1.	The difference between simple interest and compound interest on an afor 5 years at 5% p.a. is(d)mount2,365.34. Find the amount.
Answer» SI = PRT/100 = P55/100 = P/4 =.25 For compound interestA = P(1 + R/100)^5P + CI = P(1 + 5/100)^5CI = P(1.05)^5 - PCI = 1.276P - PCI = .276P Then,CI - SI = 2365.34(.276 - .25)P = 2365.34.026P = 2365.34P = 2365.34/.026P = 90974.61 Therefore, Amount = Rs 90974.61

The difference between simple interest and compound interest on an afor 5 years at 5% p.a. is(d)mount2,365.34. Find the amount.

Answer»

SI = P*R*T/100 = P*5*5/100 = P/4 =.25

For compound interestA = P(1 + R/100)^5P + CI = P(1 + 5/100)^5CI = P(1.05)^5 - PCI = 1.276P - PCI = .276P

Then,CI - SI = 2365.34(.276 - .25)P = 2365.34.026P = 2365.34P = 2365.34/.026P = 90974.61

Therefore, Amount = Rs 90974.61