# Juhi got Rs.1000 as a cash prize in an essay compet ition. She wanted to invest the amount in the bank.Calculate simple interest and co mpound interest at the rate of 5% per annum for the period of 4 years. Plot the time-inte rest graph .Find the difference in interest earned

2
by ritujaiswal

2015-01-03T16:08:19+05:30
Simple interest=1000*4*5%100=200
Interest=Rs200
compound interest=1000*5%100=50
Interest1=Rs50
principle amount=1000+50=1050
Interest2=1050*5%100=52.5
principle amount=1050+52.5=1102.5
Interest3=1102.5*5%100=55.125
principle amount=1102.5+55.125=1157.625
interest4=1157.62*5%100=57.88
principle amount=1157.62+57.88=1215.50
total interest=1215.50-1000=215.5
difference in interest earned=215.50-200=15.50

2015-01-03T19:54:28+05:30

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P = 1000
t = 4 years
r = 5% = 0.05
n = 1

Difference in Interest = Rs. 215.50 - Rs. 200 = Rs. 15.50

The simple interest graph will be a straight line passing through origin with slope=Pr/100=1000*5/100=50. And the compound interest graph is a exponential graph starting from origin.