Question 242
What is the difference between the compound interest and simple interest accrued on amount of Rs. 16200 at the end of three years @ 25% ? (rounded off to two digits after decimal)
Solution
Let the principal be P
SI = P*R*T/100
SI = 16200*25*3/100 = 12150
CI =$$P(1+ r/100)^n$$ - P
CI = $$16200(1.25)^3$$ - 16200 = 15440.625
Difference = 15440.625 - 12150 = 3290.63
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