Mathematics
CI and SI Difference (2 Years)
Find the difference between compound and simple interest for 2 years.
CI - SI = P(R/100)²
Formula Explanation
The extra interest in CI comes only from interest on the first year’s interest.
Variables Explained
P = Principal; R = Rate.
Solved Example
P = ₹5000, R = 10%. Find CI - SI for 2 years.
Difference = 5000 × (0.1)² = ₹50.