Question

the difference between compound interest and simple interest on Rs.8000 at 5% per annum for 3 years is

Answer 1

C. I
a=8000(1+5/100)^3
=8000×105/100×105/100×105/100
=8×105×105/10×105/100
=9261
c. i=9261-8000
=1261
S. I=p×r×t÷100
=8000×5×3/100
=80×5×3
=1200
difference =c. I -s. i
=1261-1200
=61