Apr 2, 2014

Mathematics question from Simple & Compound Interest

1. Find the difference between the Simple Interest and Compound Interest for an amount of 50,000 at 10% of interest rate for 2 years ?

If you try to solve this problem without using Equation, You gonna spend too much time for this question.


Difference between SI and CI for 2 years = P (R/100)2

                                                                = 50000 x 10/100 x 10/100

                                                                = 500


Equation to find Difference between SI and CI for 3 years = P (R/100)2 ( 3 + R/100 ) Equation to find Difference between SI and CI for 4 years = P (R/100)2 ( 4 + R/100 )
Equation to find Difference between SI and CI for 5 years = P (R/100)2 ( 5 + R/100 )

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