Question

a man invested rupees 1000 for three years at 11% simple interest per annum and 1000 at 10% compound interest per annum compounded annually for 3 years. Which invest investment is better.

Answer 1

HEY DEAR ...

Amount of 1st investment = 1000 + 330 = Rs. 1330
Amount of 2nd investment = Rs. 1000*110*110*110/1000000 = Rs. 1331

So in second investment there is more profit hence it is better.

HOPE , IT HELPS ...

Answer 2

Step-by-step explanation:

investment on simple interest (S.I)

p= rs 1000

T= 3 yers

R= 11%

as we know,

S.I= p×r×t/100

= 1000×11×3/100

= 330

then,

investment on Compound Interest (C.I)

P= rs 1000

T= 3 yers

R= 10%

as we know,

A= p(1+r/100)^n

A= 1000(1+10/100)^3

= 1000(110/100)^3

= 1000×11/10×11/10×11/10

= 1331

C.I= Amount-Principal

= 1331 - 1000

= 331

here, investment on compound interest is better.