The compound interest on a sum for 2 years is Rs. 832 and the simple interest on the same sum for the same period is Rs. 800. The difference between the compound and simple interest for 3 years will be?
A. 66.67
B. 36
C. 98.56
D. 60
Solution(By Examveda Team)
Simple Interest = PTR/100
800 = P *2 *R/100 (For time = 2 years).
P = 40000/R ---------------------- (1)
Difference between simple interest and compound interest over period of two years is given by,
(P *R*R) /(100 *100)
832 - 800 = (P *R*R) /(100 *100)
P *R*R = 320000
40000*R*R/R = 320000
R = 8 and P = 5000.
Difference between simple interest and compound interest over period of 3 years is given by,
= (P *R*R) /(100 *100) {(R/100) +3}
= 32 * {(8/100) +3}
= 98.56.
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is it a formula of difference??
P= 800*100/2r= 40000/r
Diff in ci and si in 2 yrs = pr²/100²
832-800=( 40000/r)r²/100²
r= 8 , p= 5000
Now diff in ci and si in 3 yrs = pr²(300+r)/100³
= 5000*8*8*308/100³
= 98.56