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If the difference between the compound interest and simple interest on a sum of 5% rate of interest per annum for three years is Rs. 36.60, then the sum is = ?

A. Rs. 8000

B. Rs. 8400

C. Rs. 4400

D. Rs. 4800

Answer: Option D

Solution(By Examveda Team)

Note : In such type of questions to save your valuable time follow the given below method
Rate % = 5%
Effective Rate of CI for 3 years = 15.7625%
Effective Rate of SI for 3 years = 5 × 3 = 15%

According to the question
$$\eqalign{ & \left( {15.7625 - 15} \right)\% \,{\text{of sum}} {\text{ = Rs. 36}}{\text{.60}} \cr & {\text{0}}{\text{.7625% of sum}} {\text{ = Rs. 36}}{\text{.60}} \cr & {\text{Sum = }}\frac{{36.60}}{{0.7625}} \times 100 \cr & \,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs. }}4800 \cr} $$

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Comments ( 4 )

  1. Vikas Babu
    Vikas Babu :
    6 months ago

    (105)^3/1000 =15.7625 for effective rate of CI

  2. Dinesh Kumar
    Dinesh Kumar :
    1 year ago

    Difference between CI and SI =[PR×R(300+R)]÷(1000000)
    Using this formula we can find the answer

  3. Dinesh Kumar
    Dinesh Kumar :
    1 year ago

    Formula for Effective rate of compound interest ={[(1+(r/n)]^n}-1
    = {[1+(5/100×3)]^3}-1
    = 15.7625.

  4. 3.1.22 Machimar
    3.1.22 Machimar :
    2 years ago

    How to find the effective rate of CI?

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