Question

Find the compound interest on Rs.3,000 for three years at 10% per annum. Find the difference between compound interest and Simple interest for that period​

Answer 1

Question:

Find the compound interest on Rs.3,000 for three years at 10% per annum. Find the difference between compound interest and Simple interest for that period​ ?

Answer:

➡️ Compound Interest = 993

➡️ Difference = 93

Explanation:

let's do it now

We know that,

CI = p(1+I)ⁿ-1

• Principle = 3,000
• Rate of Interest = 10%
• Time = 3 yrs

CI = 3,000(1+0.1)³-1

⟹ 3,000(1.1)³-1

⟹ 3,000 × 0.331

⟹ 993

2. Find the difference between compound interest and Simple interest for that period​ ?

We know that, SI = PIT/100

SI = 3,000 × 0.1 × 3 = 900

Difference between compound interest and Simple interest = 993 - 900 = 93