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Hello friends.

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Today we discuss about the difference of compound interest and simple interest for a given period of

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time over a principal or a given interest rate.

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Let's do it using math script window.

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So first I just go to math Script window.

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Or here I first add some inputs.

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My input should be principal.

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My input should be rate of interest that is denoted by R.

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My input should be time.

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So now to find out the simple interest it is denoted by s I that is equal to simple interest.

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It is equal to p into r into t divided by 100.

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It will give me simple interest.

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Okay.

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So now.

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So you just put parenthesis also.

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Okay.

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So it will give me the simple interest.

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So add output.

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Simple interest.

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Now I want to just find out the compound interest.

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So to find out the compound interest first, let's say I just use D variable to find out one plus that

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this is my one plus r divided by 100.

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So it is my de.

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You can use parentheses or it is up to you.

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You can put this way.

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So now I want to find out the power.

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So to find out the power, let's say another variable E that is equal to.

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Or you can just simply the amount is equal to principal into.

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Power.

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Of d comma t, it will give you P into one plus r divided by 100 raised to t.

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So this will give me amount and my final compound interest.

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Compound interest is equal to amount minus principal.

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Let's check.

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So add output component interest.

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So.

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Now.

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This is my great control for this.

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Create control for this.

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Create control for this.

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Create indicator for this.

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Create indicator for this.

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So we know that the compound interest of.

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One year and the simple interest of one year for the same amount, for same rate of interest and is

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same.

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So let's say the principal is 100, rate of interest is 10% and the time is one.

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So the simple interest and compound interest should be same.

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In this case, let's run it.

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As you see now, interest is same.

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So using this, if you want to find out the compound interest, difference of compound interest and

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simple interest.

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So let's say it is denoted by d i difference d I'd f.

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This is a operator used in math script to find out the difference.

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So I just use diff.

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It is equal to compound interest minus simple interest.

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So if you want to find out the difference of compound interest and simple interest for two years, just

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put the value two and over here add an output diff.

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It will give you the difference.

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Okay.

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So now I got the difference.

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So when I hit on run button it will give me the difference also.

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And I also have the compound interest and simple interest.

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So let's change the representation to double.

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So when I hit on run button, as you see over here, simple interest is 20.

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Compound interest is 21 and difference is one.

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So for the three years let's check now simple interest is 30.

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Compound interest is 33.1 and difference is 3.1.

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So right now, according to this, you can find out for how as many years you want.

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So this is how you can find out the difference of compound interest and simple interest using math script

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window.

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Thank you.