Question

Arvindbhai deposits Rs.10,000 at 10% rate of interest for 3 years in a Co-operative Society at simple interest and Pravinbhai deposits Rs.10,000 at 10 % rate of interest for 3 years at compound interest in a bank. Find the difference between interests obtained by Arvindbhai and Pravinbhai.

Answer 1

Dear Student,

◆ Answer -

310 Rs

◆ Explanation -

Simple interest obtained by Aravindbhai is given as -

SI = P × r × t

SI = 10000 × 10/100 × 3

SI = 3000 Rs

Compound interest obtained by Pravinbhai is -

CI = P [(1+r)^t - 1]

CI = 10000 [(1+10/100)^3 - 1]

CI = 10000 [1.1^3 - 1]

CI = 10000 × (1.331 - 1)

CI = 3310 Rs

Difference between interests is given by -

CI - SI = 3310 - 3000

CI - SI = 310 Rs

Therefore, difference between interests was 310 Rs.

Best luck buddy....