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What is the difference (in Rs) between the compound interest (compounded annually) and simple interest for 3 years on a principal of Rs 2500 at the rate of 30% per annum?
  • a)
    742.5
  • b)
    624.5
  • c)
    714.5
  • d)
    825.25
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
What is the difference (in Rs) between the compound interest (compound...
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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Most Upvoted Answer
What is the difference (in Rs) between the compound interest (compound...
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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What is the difference (in Rs) between the compound interest (compounded annually) and simple interest for 3 years on a principal of Rs 2500 at the rate of 30% per annum?a)742.5b)624.5c)714.5d)825.25Correct answer is option 'A'. Can you explain this answer?
Question Description
What is the difference (in Rs) between the compound interest (compounded annually) and simple interest for 3 years on a principal of Rs 2500 at the rate of 30% per annum?a)742.5b)624.5c)714.5d)825.25Correct answer is option 'A'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about What is the difference (in Rs) between the compound interest (compounded annually) and simple interest for 3 years on a principal of Rs 2500 at the rate of 30% per annum?a)742.5b)624.5c)714.5d)825.25Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the difference (in Rs) between the compound interest (compounded annually) and simple interest for 3 years on a principal of Rs 2500 at the rate of 30% per annum?a)742.5b)624.5c)714.5d)825.25Correct answer is option 'A'. Can you explain this answer?.
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