Find the difference between the simple interest and the compound interest at 10% per annum for 2 years on a principal of Tk 3000.

Question: Find the difference between the simple interest and the compound interest at 10% per annum for 2 years on a principal of Tk 3000.

Solution:
We know, Simple Interest, I = Pnr
and Compound Principal, C = p(1 + r)ⁿ

Simple Interest = 3000 × 2 × (10/100) = 600 Tk

Compound Principal = 3000 × {1 + (10/100)}²
= 3000 × (110/100)²
= (3000 × 110 × 110)/(100 × 100)
= 3630

So, Compound interest = 3630 - 3000 = 630 Tk

So, difference = 630 - 600 = 30 Tk.