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Find principal and difference between compound …

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Find principal and difference between compound interest and simple interest .when rate is 1/a% and time is 3 years..

Posted by Shikha Sirohi 2 years, 9 months ago

UP Board > Class 12 > गणित

1 answers

Sia ? 3 years ago

Parameter	Simple Interest	Compound Interest
Definition	Simple Interest can be defined as the sum paid back for using the borrowed money, over a fixed period of time.	Compound Interest can be defined as when the sum principal amount exceeds the due date for payment along with the rate of interest, for a period of time.
Formula	S.I. = (P × T × R) ⁄ 100	C.I. = P(1+R⁄100)t − P
Return Amount	The return is much lesser when compared to Compound Interest.	The return is much higher.
Principal Amount	The principal amount is constant	The principal amount keeps on varying during the entire borrowing period
Growth	The growth remains quite uniform in this method.	The growth increases quite rapidly in this method.
Interest Charged	The interest charged on is for the principal amount.	The interest charged on it is for the principal and accumulated interest.

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