Question

If the difference between simple interest and compound interest on a certain sum of money for 3 years at 10% per annum is Rs 31 , the sum is

Answer 1

Step-by-step explanation:

Let the sum is Rs100

10% Simple interest for 3 years = 10×3=Rs 30

Compound interest for 3 years = 100(1+10/100)^3 – 100 = 100×1.1^3 –100 =1.331×100 –100 = 133.1–100 =Rs 33.1

So difference of interest = 33.1–30 = Rs 3.1

Rs 3.1 is the difference when the sum is Rs 100

Rs 31 is the difference when the sum

= (100/3.1)× 31 = 100×10 = Rs 1000

The sum is Rs 1000