Question

the simple intrest on a sum for 2 years is RS800 and compound intrest on a same period is RS 800. then difference between Compound interest and simple intrest for 3 years will be?​

Answer 1

Given that simple interest for 2 years is Rs.800

i.e., Simple interest for 1st year is Rs.400

and simple interest for 2nd year is also Rs.400

Compound interest for 1st year will be 400

and Compound interest for 2nd year will be 832−400=432

you can see that compound interest for 2nd year is

more than simple interest for 2nd year by 432−400=Rs.32

Rs. 32 is the interest obtained for Rs.400 for 1 year

R=

PT

100×SI

=

400×1

100×32

=8%

Difference between compound and simple interest for the 3rd year

= Simple Interest obtained for Rs.832

=

100

PRT

=

100

832×8×1

=66.56

Total difference between the compound and simple interest for 3 years

=32+66.56=Rs.98.56