Question 39

On what principal will the difference between Compound Interest and Simple Interest at 10% rate in 3 years be equal to Rs.620?

Solution

S.I= $$\frac{P \times R \times T}{100}$$

250 = $$\frac{P \times 10 \times 3}{100}$$

= $$\frac{3x}{10}$$

compound interest + P = $$P(1+\frac{R}{100})^n$$

C I=$$P(1+\frac{10}{100})^3 - P$$

= $$\frac{31P}{1000}$$

S.I-C.I

$$\frac{31P}{1000} - \frac{3P}{10} = 620$$
31P =620000

P = 20000

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