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If the difference between compound interest and simple interest for a certain amount of money invested for 3 years at an annual interest rate of 10% is INR 527, then the amount invested in INR is
Let the amount invested be P.
Now, compound interest for 3 years = Amount after three years - Principal
or, C.I. = $$P\left(1+\dfrac{10}{100}\right)^3-P=P\left(1.1\right)^3-P=1.331P-P=0.331P$$
Also, simple interest for 3 years = S.I. = $$\dfrac{P\times\ 10\times\ 3}{100}=0.3P$$
Given, C.I. - S.I. =527
or, $$0.331P-0.3P=527$$
or, $$0.031P=527$$
or, $$P=\dfrac{527}{0.031}=17000$$
So, amount invested is 17000 INR.
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