The difference between the compound interest and simple interest earned on a particular sum in the second year alone is Rs. 123, and for the third year of investing is Rs. 369 if the interest rate is r%' per annum for both simple interest and compound interest, find the value of r?

Please explain …

Question

The difference between the compound interest and simple interest earned on a particular sum in the second year alone is Rs. 123, and for the third year of investing is Rs. 369 if the interest rate is r%' per annum for both simple interest and compound interest, find the value of r?

Please explain this in simple method

Paras · Answer

Hey , i would advice to remember the difference in the CI and SI for 2 and 3 year i.e for 2 yr CI-SI=pr*2
and for 3 year CI-SI = PR*3+3PR*2 (* is the square power)
using this divide the equation 1 by 2 and you will get the value of R as everything else will be cancelled off.... Hope this helps

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