Question

plz answer this question ........it's very important...
difference between compound interest and simple interest for a certain sum of money for 3 years at rate of 5% per annum,,,,,is rupees 61 . find sum of compound interest ans simple interest.....( it is a question of comparing quantities )

Answer 1

Given the difference between the CI and SI = 61, R = 5%, n = 3.

The formula is:

 CI - SI = Pr^2(n + r)

61 = P(5/100)^2 * (3 + 5/100)

P(5/100)^2 (3 + 5/100) = 61

61P = 488000

P = 488000/61

   = 8000.

The sum is 8000.


Hope this helps! :-))