Simple Interest and Compound Interest | Business Mathematics | BBA/B.Com | Study at Home with me

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Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period. Since simple interest is calculated only on the principal amount of a loan or deposit, it's easier to determine than compound interest.
Simple Interest
Simple interest is calculated using the following formula:
\begin{aligned} &\text{Simple Interest} = P \times r \times n \\ &\textbf{where:} \\ &P = \text{Principal amount} \\ &r = \text{Annual interest rate} \\ &n = \text{Term of loan, in years} \\ \end{aligned}
​
Simple Interest=P×r×n
where:
P=Principal amount
r=Annual interest rate
n=Term of loan, in years
​

Generally, simple interest paid or received over a certain period is a fixed percentage of the principal amount that was borrowed or lent. For example, say a student obtains a simple-interest loan to pay one year of their college tuition, which costs $18,000, and the annual interest rate on their loan is 6%. They repay their loan over three years. The amount of simple interest they pay is:
\begin{aligned} &\$3,240 = \$18,000 \times 0.06 \times 3 \\ \end{aligned}
​
$3,240=$18,000×0.06×3
and the total amount paid is:
\begin{aligned} &\$21,240 = \$18,000 + \$3,240 \\ \end{aligned}
​
$21,240=$18,000+$3,240
​
Compound Interest
Compound interest accrues and is added to the accumulated interest of previous periods; it includes interest on interest, in other words. The formula for compound interest is:
\begin{aligned} &\text{Compound Interest} = P \times \left ( 1 + r
ight )^t - P \\ &\textbf{where:} \\ &P = \text{Principal amount} \\ &r = \text{Annual interest rate} \\ &t = \text{Number of years interest is applied} \\ \end{aligned}
​
Compound Interest=P×(1+r) ^t−P
where:
P=Principal amount
r=Annual interest rate
t=Number of years interest is applied
​

It is calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods, and then minus the reduction in the principal for that year.
​
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If the difference between CI and SI on a sum of money is ₹24 for 2 years at 4%p.a repayable half yearly.
Answer = 10000
(plz solve this problem)

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Clearly

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Amount is 2300 borrowed & SI is 12% & he returned after 3 yrs principal + int amt. What is total amt including the simple interest he Had to repay.... Plzz solve this deeply... Then we understand..

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