Compare SI and CI on ₹5000 at 8% for 2 years. What is the difference (CI − SI)?

Class 8Comparing QuantitiesComparing Quantities

Step-by-Step Solution

SI =

(5000 \times 8 \times 2) /100 = 800. A = 5000 \times (1.08)^{2} = 5832

. CI = 832. Difference = 832 − 800 = 32.

Answer: B) ₹32

**SI =

(P \times R \times T) /100

.**

The interest is computed on the original principal each year. After

T

years, the total amount is

P

+ SI.

Example: ₹2000 at 5% for 3 years. SI =

(2000 \times 5 \times 3) /100 = 300

. Amount = 2300.

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