Question 155

What is the difference between the simple and compound interest earned from a sum of 13,033 at a rate of 13 percent per annum for a period of 3 years (rounded off to 2 digits after decimal) ?

Solution

Here the principal amount is Rs 13033

R = 13%

Time = 3 years

For 3 years difference between CI and SI = $$\frac{P(R)^2}{(100)^2}\times(3 + \frac{R}{100})$$

= $$\frac{13033(13)^2}{(100)^2}\times(3 + \frac{13}{100})$$

= Rs 689.41

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