Example 1 · level 1
Find the difference between compound interest and simple interest on ₹1,500 at 10% per annum for 2 years.
Show solution
- CI − SI = 1,500 × (10/100)²
- = 1,500 × 100/10000 = ₹15.
Answer: ₹15
SSC & BANK EXAMS: QUANTITATIVE APTITUDE · SIMPLE & COMPOUND INTEREST
Difference between CI and SI
For 2 years: CI − SI = P(R/100)². For 3 years: CI − SI = P(R/100)²(3 + R/100).
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Worked examples
Example 2 · level 2
Find the difference between compound interest and simple interest on ₹11,500 at 10% per annum for 2 years.
Show solution
- CI − SI = 11,500 × (10/100)²
- = 11,500 × 100/10000 = ₹115.
Answer: ₹115
Example 3 · level 3
Find the difference between compound interest and simple interest on ₹1,000 at 8% per annum for 3 years.
Show solution
- P(R/100)² = ₹6.4.
- Multiply by (3 + 8/100) = 3.08.
- Difference = ₹19.712.
Answer: ₹19.712