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Total SI for first two years is Rs. 600. If same amount was kept at CI , total would have been 660. What is the principal and rate of interest?

Mr Sharma wants to choose a investment plan

1. 15% for 5 years(SI)

2. 20% for 3 years(CI)

Which plan will result in higher amount?

My doubt is while doing the calculation for CI I got 1.728 then why are we subtracting it with 1 in order to find which will result in higher amount?

Mr Sharma wants to choose a investment plan

1. 15% for 5 years(SI)

2. 20% for 3 years(CI)

Which plan will result in higher amount?

My doubt is while doing the calculation for CI I got 1.728 then why are we subtracting it with 1 in order to find which will result in higher amount?

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