Answer:
Given Rate of interest is r=10%=0.1
Principal Amount is A=6,000
Time is t=2 years
Interest is compounded yearly once ⟹n=1
Amount =P(1+nr)nt=6000×(1+0.1)2=7260
Interest is A−P=7260−6000=1260
Simple Interest is 1006000×10×2=1200
Difference between simple interest and compound interest is 1260−1200=60
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Verified answer
Answer:
Given Rate of interest is r=10%=0.1
Principal Amount is A=6,000
Time is t=2 years
Interest is compounded yearly once ⟹n=1
Amount =P(1+nr)nt=6000×(1+0.1)2=7260
Interest is A−P=7260−6000=1260
Simple Interest is 1006000×10×2=1200
Difference between simple interest and compound interest is 1260−1200=60