Question

-3. On what sum will the difference between the simple and compound interest for 3
years at 10% p.a. is Rs 232.50?​

Answer 1

simple interest :

years percentage. Amount

(3 years). (10%). 232.50

1 st year. 10%. (232.50)*(10%)= 23.25

2 nd year. 10%. (232.50)*(10%)=23.25

3 rd year. 10%. (232.50)*(10%)=23.25

Simple Interest= 23.25+23.25+23.25

Simple interest = Rs 69.75

compound interest :

years percentage. Amount

(3 years). (10%). 232.50

1 st year. 10%. (232.50)*(10%)= 23.25

2 nd year. 10%. (232.50+23.25)*(10%)=25.575

3 rd year. 10%. (255.75+25.575)*(10%)=28.1325

Compound Interest= 23.25+25.575+28.1325

Compound interest = Rs 76.9575

Difference =SI(Simple Interest)-CI (compound interest)

= 69.75 - 76.9575

= -7.2075