# What is the formula for difference between simple interest and compound interest for 2 years?

## What is the formula for difference between simple interest and compound interest for 2 years?

Difference = 3 x P(R)²/(100)² + P (R/100)³.

How do you find the sum of compound interest?

Compound Interest: Concept, Tricks and Problems

1. Note: The above formula: A = CI + P will give us total amount.
2. Questions 1:Find the amount if Rs 20000 is invested at 10\% p.a. for 3 years.
3. Solution: Using the formula:A= P [1+ R/100]n

### What is the difference between simple interest and compound interest for 2 year at the rate of 5\% on Rs 1000?

*What is the difference between simple interest and compound interest for 2 years at the rate of 5\% on Rs. 1000?* 1️⃣ Rs. 250.

What is the difference between the compound interest and simple interest for the sum?

Simple interest is based on the principal amount of a loan or deposit. In contrast, compound interest is based on the principal amount and the interest that accumulates on it in every period.

#### On what sum of money will the difference between the Si and the CI for 2 years at 5\% per annum compounded annually is INR 15?

Hence, the required answer is Rs. 20,000.

When Principal rate and time are the same for both simple interest and compound interest?

The two ways are simple interest (SI) and compound interest (SI). Simple interest is basically the interest on a loan or investment….Difference Between Simple Interest and Compound Interest?

Parameters Simple Interest Compound Interest
Principal Amount It remains the same with tenure Principal increases. Interest gets compounded and gets added to the principal.

## What will be the difference between the CI and SI on Rs 1000 at the rate of 5\% pa for 2 years?

Difference of C.I and S.I is Rs 10 .

What is the difference between compound interest and simple interest?

#1. If the compound interest on a certain sum for two years at 10\% p.a. is Rs 2,100 the simple interest on it at the same rate for two years will be. The compound interest on a sum for 2 years is Rs. 832 and the simple interest on the same sum for the same period is Rs. 800.

### What happens when the interest is compounded half yearly?

When the interest is compounded half yearly, there are two conversion periods in a year each after 6 months. In such situations, the half yearly rate will be half of the annual rate. What will happen if interest is compounded quarterly?

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What is the cost of simple interest for 2 years?

Simple interest for two years is \$1200. So interest per year in simple interest is \$600 So, C.I for 1st year is \$600 and for 2nd year is \$630. (Since it is compounded annually, S.I and C.I for 1st year would be same)

#### Which of the following conditions are applicable to compound interest?

The above formula is applicable only in the following conditions. 1. The principal in simple interest and compound interest must be same. 2. Rate of interest must be same in simple interest and compound interest. 3. In compound interest, interest has to be compounded annually.