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The difference between the simple and compound interest on a certain of 3 years at 5% p.a is ` 228.75. The compound interest on the sum of for 2 years at 5% per annum is (a) ` 3175 (b) ` 3075 (c) ` 3275 (d) ` 2975?
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Calculation of Simple Interest and Compound Interest
The first step in solving this problem is to calculate the simple interest and compound interest for the initial sum of money.

Simple Interest
The formula for simple interest is: SI = (P * R * T) / 100
Where, P = Principal amount, R = Rate of interest, T = Time period

In this case, P = sum of money, R = 5% p.a, and T = 3 years. Therefore, the simple interest can be calculated as:

SI = (P * R * T) / 100
SI = (P * 5 * 3) / 100
SI = 0.15P

Compound Interest
The formula for compound interest is: CI = P * (1 + R/100)^T - P
Where, P = Principal amount, R = Rate of interest, T = Time period

In this case, P = sum of money, R = 5% p.a, and T = 3 years. Therefore, the compound interest can be calculated as:

CI = P * (1 + R/100)^T - P
CI = P * (1 + 0.05)^3 - P
CI = P * 1.157625 - P
CI = 0.157625P

Difference between Simple Interest and Compound Interest
The difference between simple interest and compound interest for 3 years can be calculated as:

CI - SI = 0.157625P - 0.15P
CI - SI = 0.007625P

Given that the difference is ` 228.75, we can solve for P as:

0.007625P = 228.75
P = 30000

Compound Interest for 2 years
Now that we know the initial sum of money is ` 30000, we can calculate the compound interest for 2 years at 5% p.a as:

CI = P * (1 + R/100)^T - P
CI = 30000 * (1 + 0.05)^2 - 30000
CI = 32775

Therefore, the compound interest on the sum of ` 30000 for 2 years at 5% per annum is ` 3275. Hence, the correct option is (c) ` 3275.
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The difference between the simple and compound interest on a certain o...
3075 will be right answer
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The difference between the simple and compound interest on a certain of 3 years at 5% p.a is ` 228.75. The compound interest on the sum of for 2 years at 5% per annum is (a) ` 3175 (b) ` 3075 (c) ` 3275 (d) ` 2975?
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The difference between the simple and compound interest on a certain of 3 years at 5% p.a is ` 228.75. The compound interest on the sum of for 2 years at 5% per annum is (a) ` 3175 (b) ` 3075 (c) ` 3275 (d) ` 2975? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The difference between the simple and compound interest on a certain of 3 years at 5% p.a is ` 228.75. The compound interest on the sum of for 2 years at 5% per annum is (a) ` 3175 (b) ` 3075 (c) ` 3275 (d) ` 2975? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The difference between the simple and compound interest on a certain of 3 years at 5% p.a is ` 228.75. The compound interest on the sum of for 2 years at 5% per annum is (a) ` 3175 (b) ` 3075 (c) ` 3275 (d) ` 2975?.
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