Question
Find the difference between CI and SI on ₹5000 at 10%
p.a. for 2 years (annual compounding).Solution
ATQ, CI = 5000[(1.1)² − 1] = 5000(1.21 − 1) = 1050 SI = (5000×10×2)/100 = 1000 Difference = 1050 − 1000 = 50
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