Simple Interest and Compound Interest

Q1: Fill in the blanks:

i. If S.I. and C.I. denote simple interest and interest respectively on the same sum at the same rate of interest for the same period, then the relation between S.I. and C.I. is _______.

Answer: C.I. ≥ S.I.

ii. The basic difference between simple interest and compound interest is that in simple interest, the _________ remains same throughout the loan period while in compound interest it varies.

Answer: principal

iii. If the compound interest (compounded annually) on a sum of money at a certain rate of interest for n years is equal to the simple interest on the same sum at the same rate for the same then n = _________.

Answer: 1

iv. _________ = Principal + Interest.

Answer: Amount