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The difference between the simple and compound interest on a certain sum for 3 years at 5% p.a. is ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:- a) ₹ 3,175 b) ₹ 3,075 c) ₹ 3,275 d) ₹ 2,975?
Most Upvoted Answer
The difference between the simple and compound interest on a certain s...
Solution:
Given,
Difference between Simple and Compound Interest for 3 years at 5% p.a. = ₹ 228.75
Let the principal be 'P'
Rate of interest = 5% p.a.
Time = 3 years
Simple Interest for 3 years = (P * 5 * 3)/100 = 0.15P
Compound Interest for 3 years = P * (1 + 5/100)^3 - P = P * 0.157625
Difference between Simple and Compound Interest = Compound Interest - Simple Interest
(P * 0.157625) - (0.15P) = ₹ 228.75
0.007625P = ₹ 228.75
P = ₹ 30,000
Now,
Let us find the compound interest on the sum for 2 years at 5% p.a.
Time = 2 years
Rate of interest = 5% p.a.
Principal = ₹ 30,000
Compound Interest for 2 years = P * (1 + 5/100)^2 - P
= 30000 * (1 + 0.05)^2 - 30000
= ₹ 3,175
Therefore, the compound interest on the sum for 2 years at 5% p.a. is ₹ 3,175.
Hence, option (a) ₹ 3,175 is the correct answer.
Given,
Difference between Simple and Compound Interest for 3 years at 5% p.a. = ₹ 228.75
Let the principal be 'P'
Rate of interest = 5% p.a.
Time = 3 years
Simple Interest for 3 years = (P * 5 * 3)/100 = 0.15P
Compound Interest for 3 years = P * (1 + 5/100)^3 - P = P * 0.157625
Difference between Simple and Compound Interest = Compound Interest - Simple Interest
(P * 0.157625) - (0.15P) = ₹ 228.75
0.007625P = ₹ 228.75
P = ₹ 30,000
Now,
Let us find the compound interest on the sum for 2 years at 5% p.a.
Time = 2 years
Rate of interest = 5% p.a.
Principal = ₹ 30,000
Compound Interest for 2 years = P * (1 + 5/100)^2 - P
= 30000 * (1 + 0.05)^2 - 30000
= ₹ 3,175
Therefore, the compound interest on the sum for 2 years at 5% p.a. is ₹ 3,175.
Hence, option (a) ₹ 3,175 is the correct answer.
Community Answer
The difference between the simple and compound interest on a certain s...
Step 1 : assume that the the sum(P) is ₹100
step 2 : find the simple interest on the sum of
₹ 100
i.e. si = (100*5*3)/100 =₹15
step 3: find the compound interest on ₹100
A = 100(1+0.05)³ =₹115.7625
compund int. = A - 100 = ₹ 15.7625
step 4 : find the difference between compund
interest and simple interest
i.e. ₹ 0.7625 ( 15.7625 - 15)
step 5 : compare the differences
if the difference is 0.7625 for the sum of
₹ 100
then for the difference of ₹228.75 what
will be the sum
100. 0.7625
? 228.75
hence
? = (100*228.75)/0.7625 =₹30,000
step 5 : find the compound interest on the sum
of ₹ 30,000
i.e.A= 30000(1+0.05)² = ₹33,075
C I = A - P = 33075 - 30000 = ₹ 3,075
step 2 : find the simple interest on the sum of
₹ 100
i.e. si = (100*5*3)/100 =₹15
step 3: find the compound interest on ₹100
A = 100(1+0.05)³ =₹115.7625
compund int. = A - 100 = ₹ 15.7625
step 4 : find the difference between compund
interest and simple interest
i.e. ₹ 0.7625 ( 15.7625 - 15)
step 5 : compare the differences
if the difference is 0.7625 for the sum of
₹ 100
then for the difference of ₹228.75 what
will be the sum
100. 0.7625
? 228.75
hence
? = (100*228.75)/0.7625 =₹30,000
step 5 : find the compound interest on the sum
of ₹ 30,000
i.e.A= 30000(1+0.05)² = ₹33,075
C I = A - P = 33075 - 30000 = ₹ 3,075
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The difference between the simple and compound interest on a certain sum for 3 years at 5% p.a. is ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:- a) ₹ 3,175 b) ₹ 3,075 c) ₹ 3,275 d) ₹ 2,975?
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The difference between the simple and compound interest on a certain sum for 3 years at 5% p.a. is ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:- a) ₹ 3,175 b) ₹ 3,075 c) ₹ 3,275 d) ₹ 2,975? 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 sum for 3 years at 5% p.a. is ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:- a) ₹ 3,175 b) ₹ 3,075 c) ₹ 3,275 d) ₹ 2,975? 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 sum for 3 years at 5% p.a. is ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:- a) ₹ 3,175 b) ₹ 3,075 c) ₹ 3,275 d) ₹ 2,975?.
The difference between the simple and compound interest on a certain sum for 3 years at 5% p.a. is ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:- a) ₹ 3,175 b) ₹ 3,075 c) ₹ 3,275 d) ₹ 2,975? 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 sum for 3 years at 5% p.a. is ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:- a) ₹ 3,175 b) ₹ 3,075 c) ₹ 3,275 d) ₹ 2,975? 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 sum for 3 years at 5% p.a. is ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:- a) ₹ 3,175 b) ₹ 3,075 c) ₹ 3,275 d) ₹ 2,975?.
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