Question
What is the difference between the compound interest,
interest compounded half yearly on ₹72,000 for 1.5 years at 10% per annum and its simple interest for 3 years at 5% per annum?Solution
Principal (P): 72,000 Rate (r)= 10% per annum (5% per half-year) Time (t)= 1.5 years (3 half-years) CI = 72000 (1+0.05)3 - 72000 CI =72000 × 1.157625-72000 CI=83349-72000 CI = 11349 Now simple interest- SI =72000×5×3)/100 =10800. Now difference =11349-10800 =549
Statements: L < E; M = O; E >K ≥ M
Conclusions:
I. L < M
II. K = O
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