Question

A sum invested in compound interest (CI) at a certain rate for three years earns the same interest as it would
eam by way of an investment in simple interest (SI) at the rate of 18.2% for four years. How much more or
less is the percentage rate in case of the CI than that in the case of the SI?
0 20.63
O 21.25
O 16.52
O 18.43​

Answer 1

Step-by-step explanation:

Simple Interest is the rate at which we lend or borrow money. In the following section, we will define the important terms and formulae that will help us solve and understand the questions on the simple interest. We will define the concept of Simple interest and use these formulae and definitions to solve questions that we expect will come from this section. Let us begin with the definitions!