simple: 10000(1+.12*5)
compound: 10000(1+.10)^5
evaluate and compare.
If an amount of Rs 10,000/- is invested at a simple interest of 12% per annum, how much it will become at the end of 5 years ? And if this amount is invested at a compound interest of 10% per annum (the interest being compounded on yearly basis), how much it will become at the end of 5 years ? Also answer that the invested amount will be more at the end of 5 years in which case.
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1 answer