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» N : ❒ Given :- Rate of INTEREST, R = 10% p.a.No. of years, n = 3 years Difference between C.I. and S.I. = Rs. 496❒ To Find :- The sum of money, P = ? ❒ Formulas Used :- ❒ 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.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 when the interest is compounded annually the sum is Rs. 16000.