The difference between the compound interest and the simple interest on a certain sum ofmoney at 10% per annum for 3 years is Rs 496.Find the sum when the interest is compoundedannually.Sum of money = Rs

The difference between the compound interest and the simple interest

1.	The difference between the compound interest and the simple interest on a certain sum ofmoney at 10% per annum for 3 years is Rs 496.Find the sum when the interest is compoundedannually.Sum of money = Rs
Answer» : ★ If the DIFFERENCE between the compound interest and the SIMPLE interest on a certain sum of money at 10% PER annum for 3 years is Rs. 496, then the sum is Rs. 16000 when the interest is compounded annually.SOLUTION : ❖ Given :- Difference between C.I. and S.I. = Rs. 496Rate of Interest, r = 10% p.a.No. of years, N = 3 years ❖ To Find :- The sum of money, P = ? ❖ Required Formulas :- ❖ Calculation of Simple Interest :- ❖ Calculation of Compound Interest :- According to Question,Hence, the sum of money, P = Rs. 16000.VERIFICATION : ❖ We have :- Sum of money, P = Rs. 16000Rate of Interest, r = 10% No. of years, n = 3 years. ❖ To VERIFY :- Difference between C.I. and S.I. = Rs. 496Now, And,Hence, Verified.