1.

What is the difference (in Rs.) between compound interest (compounded annually) and simple interest for 3 years on a principal of Rs. 3000 at the annual rate of 20%?1). 4642). 3843). 3564). 424

Answer»

We know that,

Difference between C.I and S.I for 3 years = P(R/100)2 (3 + R/100)

We have given that,

P = RS.3000, R = 20%

C.I – S.I = 3000 × (20/100)2 (3 + 20/100)

= 3000 × (1/25) × (320/100)

= Rs. 384

∴ Difference for 3 years between C.I and S.I is Rs. 384


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