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The difference between CI and SI on a certain sum of money at 20% per annum for 2 years is Rs 800, what would be the difference of CI and SI on that same sum of money after 3 years if the rate of interest was 10%?
  • a)
    Rs 600
  • b)
    Rs 580
  • c)
    Rs 620
  • d)
    Rs 640
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
The difference between CI and SI on a certain sum of money at 20% per...
Let the principle be Rs 'P'.
Given, P(20/100)2 = 800
P = 20,000
Difference between CI and SI in 3 years
= P(R/100)2((300 + R)/100) [symbols have their usual meanings]
= 20,000(10/100)2((300 + 10)/100)
= Rs 620
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Most Upvoted Answer
The difference between CI and SI on a certain sum of money at 20% per...
Given data:

Rate of interest = 20% per annum

Time = 2 years

Difference between CI and SI = Rs 800

To find:

Difference between CI and SI after 3 years at a rate of 10% per annum

Solution:

Let the sum of money be Rs. P.

Formula for CI:

CI = P [(1 + R/100) ^ n – 1]

Formula for SI:

SI = P * R * n / 100

Where P is the principal amount, R is the rate of interest, and n is the time period.

Calculation of CI and SI for 2 years at 20% per annum:

CI = P [(1 + 20/100) ^ 2 – 1] = P [44/100]

SI = P * 20 * 2 / 100 = P [40/100]

The difference between CI and SI = CI – SI

= P [44/100] – P [40/100]

= P [4/100]

Given that the difference between CI and SI is Rs 800.

Therefore, P [4/100] = Rs 800

P = Rs 20,000

Calculation of CI and SI for 3 years at 10% per annum:

CI = P [(1 + 10/100) ^ 3 – 1] = P [33/100]

SI = P * 10 * 3 / 100 = P [30/100]

The difference between CI and SI = CI – SI

= P [33/100] – P [30/100]

= P [3/100]

= Rs 600

Hence, the difference between CI and SI after 3 years at a rate of 10% per annum is Rs 620.

Therefore, the correct option is (C).
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The difference between CI and SI on a certain sum of money at 20% per annum for 2 years is Rs 800, what would be the difference of CI and SI on that same sum of money after 3 years if the rate of interest was 10%?a)Rs 600b)Rs 580c)Rs 620d)Rs 640Correct answer is option 'C'. Can you explain this answer?
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