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If the simple interest is 10.5% annual and compound interest is 10% annual, find the difference between the interests after 3 years on a sum of Rs. 1000.
- a)Rs. 15
- b)Rs. 12
- c)Rs. 16
- d)Rs. 11
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
If the simple interest is 10.5% annual and compound interest is 10% an...
At 10% compound interest the interest in 3 years would be 33.1% = Rs.331 At 10.5% simple interest the interest in 3 years would be 31.5% = Rs.315 Difference = Rs.16
Most Upvoted Answer
If the simple interest is 10.5% annual and compound interest is 10% an...
Given:
Simple interest rate = 10.5% annual
Compound interest rate = 10% annual
Principal amount = Rs. 1000
Time = 3 years
To find:
Difference between simple interest and compound interest after 3 years
Solution:
Calculating Simple Interest:
Simple Interest (SI) can be calculated using the formula:
SI = (P * R * T) / 100
Where:
P = Principal amount
R = Rate of interest
T = Time
Substituting the given values:
SI = (1000 * 10.5 * 3) / 100
SI = 3150 / 100
SI = 31.5
Calculating Compound Interest:
Compound Interest (CI) can be calculated using the formula:
CI = P * (1 + R/100)^T - P
Where:
P = Principal amount
R = Rate of interest
T = Time
Substituting the given values:
CI = 1000 * (1 + 10/100)^3 - 1000
CI = 1000 * (1.1)^3 - 1000
CI = 1000 * 1.331 - 1000
CI = 1331 - 1000
CI = 331
Calculating the Difference:
Difference between simple interest and compound interest = CI - SI
Difference = 331 - 31.5
Difference = 299.5
Answer:
The difference between the simple interest and compound interest after 3 years on a sum of Rs. 1000 is Rs. 299.5.
Simple interest rate = 10.5% annual
Compound interest rate = 10% annual
Principal amount = Rs. 1000
Time = 3 years
To find:
Difference between simple interest and compound interest after 3 years
Solution:
Calculating Simple Interest:
Simple Interest (SI) can be calculated using the formula:
SI = (P * R * T) / 100
Where:
P = Principal amount
R = Rate of interest
T = Time
Substituting the given values:
SI = (1000 * 10.5 * 3) / 100
SI = 3150 / 100
SI = 31.5
Calculating Compound Interest:
Compound Interest (CI) can be calculated using the formula:
CI = P * (1 + R/100)^T - P
Where:
P = Principal amount
R = Rate of interest
T = Time
Substituting the given values:
CI = 1000 * (1 + 10/100)^3 - 1000
CI = 1000 * (1.1)^3 - 1000
CI = 1000 * 1.331 - 1000
CI = 1331 - 1000
CI = 331
Calculating the Difference:
Difference between simple interest and compound interest = CI - SI
Difference = 331 - 31.5
Difference = 299.5
Answer:
The difference between the simple interest and compound interest after 3 years on a sum of Rs. 1000 is Rs. 299.5.
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If the simple interest is 10.5% annual and compound interest is 10% annual, find the difference between the interests after 3 years on a sum of Rs. 1000.a)Rs. 15b)Rs. 12c)Rs. 16d)Rs. 11Correct answer is option 'C'. Can you explain this answer?
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