a man invested ₹ 1000 for three years at 11% simple interest per annum and ₹ 1000 at 10% compound interest per annum compounded annually for three years find which investment is better
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As simple interest is less
This investment is better
This investment is better
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[tex]P = 1000
N = 3
R FOR SI = 11%
R FOR CI = 10%
SI = PNR
SI = 1000 * 3 * 11/100
SI = 330
A = P (1+r/100)^{n}
A = 1000 (1+10/100)^{3}
A = 1000 * 110 / 100 * 110 / 100 * 110 / 100
A = 1331[/tex]
∴CI = 1331 - 1000
= 1331
SI = 330
SO, First investment for CI is better
A = P (1+r/100)^{n}
A = 1000 (1+10/100)^{3}
A = 1000 * 110 / 100 * 110 / 100 * 110 / 100
A = 1331[/tex]
∴CI = 1331 - 1000
= 1331
SI = 330
SO, First investment for CI is better
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