Question

activity
Mukunthan invests 30000 for 3 months in a bank which gives C.I at the rate of
12% pa, compounded monthly. A private company offers his S.I at the rate of 12% p.a.
What is the difference in the interests received by Mukunthan? Do by traditional method
and verify your answer by calculator.​

Answer 1

Answer:

The difference in Compound & Simple interest is  9.3 Rs

Step-by-step explanation:

Rate of interest = R  = 1 % per month

Time = n = 3 Months

P = Amount Deposited = Rs 30000

Interest Received = 30000( 1 + R/100)ⁿ -  30000      ( Calculator method)

= 30000 ( 1 + 1/100)³  - 30000

= 909.3   Rs  

Now using Traditional Method

Interest for 1 st month = 30000 x 1 x 1 /100 = 300

Interest for 2nd Month = (30000 + 300) x 1 x 1 /100 = 303

Interest for 3rd month = (30000 + 300 + 303) x 1 x 1/100 = 306.03

Total Interest after 3 months = 300 + 303 + 306.3  = 909.3  Rs

Traditional Method = Calculator = 909.3 Rs

Interest with Simple Interest

= 30000 x 1 x 3/100

= 900 Rs

Difference in Compound & Simple interest = 909.3 - 900  = 9.3  Rs