1. Difference between
Compound Interest
& Simple Interest

2. When P is the Principal, n = 2 years and r is the Rate of interest,
Difference between C. I. and S. I. for 2 years =

3. Example1:- Find the difference between Simple Interest and Compound Interest for
a sum of Rs 8,000 lent at 10% p. a. in 2 years.
Solution Given:- P = Rs 8000, n = 2 years, r = 10% p. a.
To Find:- difference between Simple Interest and Compound Interest
We know that difference between Simple Interest and Compound
Interest when n is 2 years
= 80
Ans:- Difference between Simple Interest and Compound Interest is Rs 80

4. Example1:- The difference between C. I. and S. I
Example1:- The difference between C. I. and S. I. for 2 years on a sum of money lent
at 5% p.a. is Rs 5. Find the sum of money lent.
Solution Given:- difference between C. I. and S. I. =Rs 5 , n = 2 years, r = 5% p. a.
To Find:- sum of money lent (Principal)
We know that difference between Simple Interest and Compound
Interest when n is 2 years
= 5 X 10 X 10 = Rs 5000
Ans:- Difference between Simple Interest and Compound Interest is Rs 5000

5. Try these Find the difference between Simple Interest and Compound
Interest for a sum of Rs. 50,000 lent at 25% p. a. in 2 years.