Question

If S.I is the simple interest on a certain sum for 3 years at R% per annum, and C.I is the compound interest on the same sum for same time period at the same rate of interest compounded annually, then
a)C.I > S.I
b)C.I = S.I
c)none of the above
d)C.I < S.I

Answer 1

80,000 amount to Rs. 96800 in 2 years at the rate of 20% p.a., if interest is compounded half yearly.

If the difference between compound and simple interest is of three years than, Difference = 3 x P(R)²/(100)² + P (R/100)³. Test yourself by answering these 25 Practice Questions set of SI an CI.

Answer: Principal sum = ₹1000, interest rate = 10%p.a. , time= 4yrs. Simple interest= P.R.T/100 = 1000×10×4/100 = 400. Compound interest= P{1+ R/100}™ - P =1000{1+10/1000}^4-1000 = 1464.1 - 1000 = 464.1 Thus difference in interests= 464.1 - 400 = ₹64.1