Question

12. The difference between the compound interest and Simple interest on a sum of Rs.42,500
for 3 years at a rate of 8% p.a. will be ---------------

Select one:
Rs.837.76
Rs.721.56
Rs.930
Rs. 1102.32

Answer 1

Let the sum =P

Simple Interest for three years =P×

100

5

×10=0.15P

CI=P(1+

100

5

)

3

−P

=P(1.05)

3

−P

1.15763P−P=0.15763P

Difference between compound interest and simple interest

CI−SI=0.51763P−0.15P

=0.00763P

0.00763P=76.30

P=10,000