Question

difference between compound and simple interest on certain sum at 10% per annum for 3 years is ₹93. find the sum

Answer 1

in this question the sum is 310

Answer 2

The sum would be 3000 rupees.

Step-by-step explanation :

Let sum is P,

Since, the simple interest formula is,

$I = P\times r\times t$

If r = 10% = 0.1, t = 3,

Simple interest is,

$I_1=P\times 0.1\times 3 = 0.3P$

Now, the compound interest formula,

$I=P(1+r)^t-P$

So, the compound interest is,

$I_2 = P(1+0.1)^3 - P = P(1.1)^3 - P = 1.331P-P = 0.331P$

According to the question,

$I_2-I_1=93$

0.331P-0.3P = 93

0.031P = 93

$\implies P = \frac{93}{0.031}=3000$

Hence, the sum would be 3000 rupees.