Find principal and difference between compound …
Find principal and difference between compound interest and simple interest .when rate is 1/a% and time is 3 years..
Posted by Shikha Sirohi 1 year, 11 months ago
- 1 answers
|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.
|S.I. = (P × T × R) ⁄ 100
|C.I. = P(1+R⁄100)t − P
|The return is much lesser when compared to Compound Interest.
|The return is much higher.
|The principal amount is constant
|The principal amount keeps on varying during the entire borrowing period
|The growth remains quite uniform in this method.
|The growth increases quite rapidly in this method.
|The interest charged on is for the principal amount.
|The interest charged on it is for the principal and accumulated interest.