Find the difference between the simple interest and the compound interest at 5% per annum for 2 years on principal of Rs. 2000.

15
210.5
34.5
45.5

Answer:- 1

Explanation:-

Solution:

\begin{aligned} The difference between compound interest and \\ simple interest over two years is given by \\ \frac{{Pr}^{2}}{100^{2}} o r P {(\frac{r}{100})}^{2} \\ Here, Principal (P) = R s . 2000 \\ Rate (r) = 5 % \\ Now difference, \\ D = \frac{(2000 \times 5 \times 5)}{(100 \times 100)} \\ D = R s . 5 \end{aligned}

$\eqalign{ & {\text{The}}\,{\text{difference}}\,{\text{between}}\,{\text{compound}}\,{\text{interest}}\,{\text{and}} \cr & {\text{simple}}\,{\text{interest}}\,{\text{over}}\,{\text{two}}\,{\text{years}}\,{\text{is}}\,{\text{given}}\,{\text{by}} \cr & \frac{{{{\Pr }^2}}}{{{{100}^2}}}\,or\,P{\left( {\frac{r}{{100}}} \right)^2} \cr & {\text{Here,}}\,{\text{Principal}}\,\left( P \right) = Rs.\,2000 \cr & {\text{Rate}}\,\left( r \right) = 5\% \cr & {\text{Now}}\,{\text{difference}}, \cr & D = \frac{{\left( {2000 \times 5 \times 5} \right)}}{{\left( {100 \times 100} \right)}} \cr & D = Rs.\,5 \cr}$