Question

The difference between the compound interest and simple Interest on a certain sum at 15% per annum for 3 years is rupees 1,134. Find the sum

Answer 1

to find the simple interest we have to use the formula principal x rate x 3 / 100 if we put this sum in the formula we will get like this 1134 multiply 15 multiply 3 divide hundred by this we will get the simple interest while finding a simple interest we have to put the rate as it is as it is given but when we are going to find the compound interest will use formula same as it is in the simple interest principal multiply rate multiply time divide by 100 in this we will find principals as it is given in the sum as 113 4th divided rate as 15% divided by 1 will take the year as one after this who got the interest we have to find amount principal minors simple interest then what the amount will be that we will consider as the principal for the next time by this phrase by doing three time we will get the compound interest thank you