Question

The difference between the compound interest and the simple interest on a certain sum of money at 15% per annum for three years is ₹283.50.find the sum.

Answer 1

Heya friend,

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Let the sum be ₹P. Then,

S.I. = P×R×T/100

= P×15×3/100

=₹ 9P/20

C.I. = P{(1+R/100)^n - 1}

= P{(1+15/100)^3 - 1}

= P{(100+15/100)^3 - 1}

= P{(115/100)^3 - 1}

= P{(23/20)^3 - 1}

= P{12,167/8,000 - 1}

= P{12,167 - 8,000/8,000}

= ₹ 4,167P/8,000

Difference = C.I. - S.I.

=> 283.50 = 4,167P/8,000 - 9P/20

=> 28,350/100 = 4,167P - 3,600P/8,000

=> 567/2 = 567P/8,000

=> P = 8,000×567/567×2

=> P = ₹4,000


Hence, the sum is ₹ 4,000.


Thanks

With regards@

Tanisha