Hello friends.
Today we discuss about the difference of compound interest and simple interest for a given period of
time over a principal or a given interest rate.
Let's do it using math script window.
So first I just go to math Script window.
Or here I first add some inputs.
My input should be principal.
My input should be rate of interest that is denoted by R.
My input should be time.
So now to find out the simple interest it is denoted by s I that is equal to simple interest.
It is equal to p into r into t divided by 100.
It will give me simple interest.
Okay.
So now.
So you just put parenthesis also.
Okay.
So it will give me the simple interest.
So add output.
Simple interest.
Now I want to just find out the compound interest.
So to find out the compound interest first, let's say I just use D variable to find out one plus that
this is my one plus r divided by 100.
So it is my de.
You can use parentheses or it is up to you.
You can put this way.
So now I want to find out the power.
So to find out the power, let's say another variable E that is equal to.
Or you can just simply the amount is equal to principal into.
Power.
Of d comma t, it will give you P into one plus r divided by 100 raised to t.
So this will give me amount and my final compound interest.
Compound interest is equal to amount minus principal.
Let's check.
So add output component interest.
So.
Now.
This is my great control for this.
Create control for this.
Create indicator for this.
So we know that the compound interest of.
One year and the simple interest of one year for the same amount, for same rate of interest and is
same.
So let's say the principal is 100, rate of interest is 10% and the time is one.
So the simple interest and compound interest should be same.
In this case, let's run it.
As you see now, interest is same.
So using this, if you want to find out the compound interest, difference of compound interest and
simple interest.
So let's say it is denoted by d i difference d I'd f.
This is a operator used in math script to find out the difference.
So I just use diff.
It is equal to compound interest minus simple interest.
So if you want to find out the difference of compound interest and simple interest for two years, just
put the value two and over here add an output diff.
It will give you the difference.
Okay.
So now I got the difference.
So when I hit on run button it will give me the difference also.
And I also have the compound interest and simple interest.
So let's change the representation to double.
So when I hit on run button, as you see over here, simple interest is 20.
Compound interest is 21 and difference is one.
So for the three years let's check now simple interest is 30.
Compound interest is 33.1 and difference is 3.1.
So right now, according to this, you can find out for how as many years you want.
So this is how you can find out the difference of compound interest and simple interest using math script
window.
Thank you.