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Difference between Simple Interest & Compound Interest
Last updated at April 16, 2024 by Teachoo
Chapter 7 Class 8 Comparing Quantities
Concept wise
- Ratios & Percentages
- Finding Increase or Decrease Percent
- Finding Discounts
- Finding cost price, selling price, profit % , loss%
- Sales Tax and Value Added Tax
- Simple Interest
-
Compound Interest
- Compound Interest compounded half yearly
- Compound Interest for fraction years
- Applications of Compound Interest Formula
Transcript
Difference between Simple Interest & Compound Interest Simple Interest In simple interest, interest for all years is same. SI is smaller than CI Formula is Interest = (𝑃 × 𝑅 × 𝑇)/100 Interest is on Principal amount only. Compound Interest In compound interest, interest for all years is different. CI is larger than SI Formula is Amount = P (1+𝑅/100)^𝑛 Interest is on previous interest as well as the principal amount.
