What is the difference between the compound interest and the simple interest on Rupees 8000 at 15% for 2 years?

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C.I.A=p[1+r/100]2  = 8000[1+15/100]2  = 8000[100+15/100]2  = 8000[115/100]2  = 8000* 115/100* 115/100  = 10580I = A - P  = 10580 - 8000  = 2580S.I.S.I. = P*R*T/100      = 8000 * 15 * 2/100      = 2400 Difference = C.I. - S.I.                    = 2580 - 2400

                    = 180

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Given : P = Rs. 8,000, R = 5%, T = 2 years
For simple interest,

S.I. = `[ "P" xx "R" xx "T"]/100`

= `[8,000 xx 5 xx 2]/100`

= Rs. 800

For compound interest,

`"A" = "P"( 1 + r/100 )^n`

`"A" = 8,000( 1 + 5/100 )^2`

= `8,000 xx 21/20 xx 21/20`

= Rs. 8,820

C.I. = A - P      = Rs. (8,820 - 8,000)

      = Rs. 820

Now, C.I. - S.I. = Rs. ( 820 - 800 ) = Rs. 20.
Thus, the difference between the compound interest and the simple interest is Rs. 20.

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