Question

Find the compound interest at the rate of 15% for 3 years on Rs 32,000 compounded annually, also find the difference between the compound interest and simple interest.

Answer 1

Amount= P(1+R/100)^N

= 32000(1+15/100)^3

=32000(1.15)^3= Rs. 48668

CI= 48668-32000= Rs. 16668

SI= PRT/100

= (32000*15*3)/100

Rs. 14400

Req. Difference= CI-SI

= 16668-14400= Rs.2268