Question

the difference between the compound interest and simple interest on a certain sum of money at 20/3% per annum for 3 years is ₹46. Find the sum.

Answer 1

Let sum is P.

The difference between compound interest and simple interest over three years is given by  

= P(r/100)2*{(r/100)+3};

48 = P*(20/100)2*{(20/100)+3};

48 = P* 4/100* 16/5;

48 = P*64/500;

Or, 64P = 48*500;

Hence, P = Rs. 375.