Difference between C.I and S.I

Difference between C.I and S.I

• There is no difference in C.I and S.I for the first year or the first conversion period.

• For 2 years, the difference in C.I and S.I is

C.I – S.I =P (r/100 )²

• For 3 years, the difference in C.I and S.I is

Example 4.18

Find the difference in C.I and S.I for

(i) P = ₹5000, r = 4% p.a, n = 2 years.

(ii) P = ₹8000, r = 5% p.a, n = 3 years.

Solution: