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What will be the difference between the simple interest and compound interest accrued on an amount of Rs. 19200 of 3 years @ 12 p.c.p.a. ?
Answer & Solution
Correct Answer:
Option
D
$$\eqalign{
& {\text{S}}{\text{.I}}{\text{. = Rs}}{\text{.}}\left( {\frac{{19200 \times 12 \times 3}}{{100}}} \right) \cr
& \,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.6912}} \cr
& {\text{C}}{\text{.I}}{\text{. = Rs}}{\text{.}}\left[ {19200 \times {{\left( {1 + \frac{{12}}{{100}}} \right)}^3} - 19200} \right] \cr
& = {\text{Rs}}{\text{.}}\left[ {\left( {19200 \times \frac{{28}}{{25}} \times \frac{{28}}{{25}} \times \frac{{28}}{{25}}} \right) - 19200} \right] \cr
& = {\text{Rs}}{\text{. }}\left( {\frac{{16859136}}{{625}} - 19200} \right) \cr
& = {\text{Rs}}{\text{. }}\left( {26974.6176 - 19200} \right) \cr
& = {\text{Rs}}{\text{. 7774}}{\text{.6176}} \cr
& \therefore {\text{Difference }} \cr
& {\text{ = Rs}}{\text{.}}\left( {7774.6176 - 6912} \right) \cr
& = {\text{Rs}}{\text{. 862}}{\text{.6176}} \cr} $$
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