Question 42

Find the difference between the Simple Interest and Compound Interest on Rs.10000 for 3 years at the rate of 3% per annum.

Solution

SI = $$ \frac{PNR}{100} $$

CI = $$ P(1 + \frac{r}{100})^n $$

P = 10000

N = 3 years

R = 3%

$$ SI = \frac{10000 \times 3 \times 3}{100} = 900 $$

CI = $$ 10000(1 + \frac{3}{100})^3 $$

= 927.27

CI - SI = 927.27 - 900 = 27.27

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