Worksheet on Difference of Compound Interest and Simple Interest

Practice the questions given in the worksheet on difference of compound interest and simple interest.

Compound interest for 2 years – simple interest for two years

= P{(1 + $$\frac{r}{100}$$)$$^{2}$$ - 1} - $$\frac{P × r × 2}{100}$$

= P × $$\frac{r}{100}$$ × $$\frac{r}{100}$$

= $$\frac{(P × \frac{r}{100}) × r × 1}{100}$$

= Simple interest for 1 year on “Simple interest for 1 year”.

1. Find the difference between compound interest and simple interest on $12,000 and in 1$$\frac{1}{2}$$ years at 10% compounded yearly. 2. What is the difference of the compound interest and the simple interest on$ 14,000 at the interest rate of 10% per annum for 2 years?

3. Find the difference between the simple interest and compound interest on $12000 for 2 years at 7.5% per annum. 4. Find the difference between compound interest and simple interest on$ 12,000 and in 1$$\frac{1}{2}$$ years at 10% compounded half-yearly.

5. A man invested $8,000 for 3 years at a simple interest rate of 8% per annum. Had the invested the same sum for the same period at a compound interest rate of 7$$\frac{1}{2}$$ % per annum, how much more would he have received after 3 years? 6. On what sum of money will the difference between compound interest and simple interest be$ 840 in 2$$\frac{1}{2}$$ years at 20% per annum compounded annually?

7. Find the difference between the simple interest and compound interest on $40000 for 3 years at 8% per annum. 8. If the difference of the CI and the SI on a sum of money for two years is$ 12.50 at the annual interest rate of 5%, find the sum of money.

9. Find the sum of money invested, if the difference between the compound interest and simple interest for 2 years at 9% per annum is $12960. 10. If the difference of the CI and the SI on a sum of money for 2 years is 1% of the sum of money then, find the annual rate of interest. 11. The compound interest in one year on a certain sum of money at 10 % per annum compounded half-yearly exceeds the simple interest on the same sum at the same rate and for the same period by$ 30. Calculate the sum.

12. On what sum of money, will the difference between the compound interest and simple interest for 3 years become $930 at 10% per annum. 13. If the rate of interest is 6$$\frac{2}{3}$$% per annum and the difference of the CI and the SI on a sum of money for 3 years is$ 46 then find the sum of money.

Answers for the worksheet on difference of compound interest and simple interest are given below.

1. $60 2.$ 140

3. $67.50 4.$ 91.50

5. $18.38 6.$ 10,000

7. $788.48 8.$ 5,000

9. $16,000 10. 10% 11.$ 12,000

12. $30,000 13.$ 3,375