calculate the simple interest and compound interest on ₹5000 for 2 years at 10% per annum. how much more is the compound interest then the simple interest?

Simple: 6000

Compound: 6050

Difference: 50

Step-by-step explanation:

Simple interest formula: A = P(1+rt), where A = final amount, P = initial amount, r = rate, and t = time. Plug our values in to get

A = 5000(1+10% * 2)

convert 10% to a decimal by dividing by 100 and plug that in

10% = 0.1

5000(1+0.1*2) = 5000(1.2) = A = 6000

Compound interest formula: A = P(1+r)^t

Plug our values in

5000(1+0.1)^2 = 6050

Difference = 6050 - 6000 = 50

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step-by-step explanation:

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