Question

A SUM OF MONEY GETS RS. 966
AS SIMPLE INTEREST FOR 3
YEARS AT A FIXED RATE OF
INTEREST P.A. THE COMPOUND
INTEREST FOR THE SAME RATE
AND TIME WOULD BE RS.

Answer 1

The compound interest is $\frac{32200}{r}(1+r )^{3}$ Rs.

• Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest. Although some mortgages employ this calculation approach, this kind of interest typically relates to auto loans or short-term loans.
• When you make a payment on a loan with simple interest, the money first goes toward the interest for that month and the rest is applied to the principal. Interest never builds up because it is always paid in whole each month. Compound interest, on the other hand, adds some of the monthly interest back onto the loan; each month after that, you pay new interest on the previous month's interest.

Let the sum of money be x.

Now, according to the given information,

$\frac{x.3.r}{100} =966$

Or, x = $\frac{32200}{r}$

Then, compound interest will be,

$\frac{32200}{r}(1+r )^{3}$.

Hence, the compound interest is $\frac{32200}{r}(1+r )^{3}$ Rs.

Learn more here

https://brainly.in/question/1077196

#SPJ1