Question

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

Answer 1

As simple interest is less
This investment is better

Answer 2

[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