First, let's calculate the Compound Interest (C.I) and Simple Interest (S.I) for one year on Rs 5000 at the rate of 10% per annum.
- Simple Interest (S.I):
S.I = (Principal x Rate x Time) / 100
S.I = (5000 x 10 x 1) / 100
S.I = 500
- Compound Interest (C.I):
C.I = Principal x [(1 + Rate/100)^Time - 1]
C.I = 5000 x [(1 + 10/100)^1 - 1]
C.I = 5000 x (1.1 - 1)
C.I = 5000 x 0.1
C.I = 500
Therefore, the Simple Interest (S.I) for one year is Rs 500, and the Compound Interest (C.I) for one year is also Rs 500.
- Difference between C.I and S.I:
To find the difference between C.I and S.I, we subtract S.I from C.I:
Difference = C.I - S.I
Difference = 500 - 500
Difference = 0
Therefore, the difference between Compound Interest (C.I) and Simple Interest (S.I) for one year on Rs 5000 at the rate of 10% per annum is Rs 0. This means that in this case, the C.I and S.I are the same.
In conclusion, when the principal amount, rate of interest, and time period are the same, the difference between Compound Interest (C.I) and Simple Interest (S.I) will be zero.