1.

1). 742.52). 624.53). 714.54). 825.25

Answer»

Given, Principal = Rs. 2500, Rate = 30%, Time = 3 years

When the interest is compounded annually,

Compound interest = Principal × [(1 + Rate/100)Time - 1]

⇒ Compound interest = 2500 × [(1 + 30/100)3 - 1] = 2500 × 1.197 = Rs. 2992.5

SIMPLE interest = (Principal × Rate × Time)/100

⇒ Simple interest = (2500 × 30 × 3)/100 = Rs. 2250

REQUIRED difference = 2992.5 - 2250 = Rs. 742.5



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