Find the difference between Compound Interest and Simple Interest on Rs. 10000 for 4 years at 10% p.a., if interest is compounded annually
Rs. 560
Rs. 641
Rs. 450
Rs. 240
Explanation:
Difference between Compound Interest and Simple Interest for 4 years
= Pr2r2 (6 + 4r + r2r2) = 10000 x 110110 x 110110 x (6+410+1100)(6+410+1100)
= 10000 x 1100×6411001100×641100 = Rs. 641
Difference between Compound Interest and Simple Interest for 4 years
= Pr2r2 (6 + 4r + r2r2) = 10000 x 110110 x 110110 x (6+410+1100)(6+410+1100)
= 10000 x 1100×6411001100×641100 = Rs. 641