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What is the difference (in Rs.) between compound interest (compounded annually) and simple interest for 3 years on a principal of Rs. 4000 at the rate of 30% per annum?
- A976
- B1024
- C1188
- D1276
Answer not set
Discussion 1
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CCommunity
Simple interest = (P × R × T)/100
Compound Interest = P [1 + R/100]n - P
where P is the principal, R is the rate of interest and T is the time- period
P = 4000
R = 30%
T = 3 years
SI = (4000 × 30 × 3)/100 = Rs. 3600
CI = 4000 [1 + 30/100]3 - 4000 = 8788 - 4000 = Rs. 4788
∴ Difference = 4788 - 3600 = Rs. 1188
Compound Interest = P [1 + R/100]n - P
where P is the principal, R is the rate of interest and T is the time- period
P = 4000
R = 30%
T = 3 years
SI = (4000 × 30 × 3)/100 = Rs. 3600
CI = 4000 [1 + 30/100]3 - 4000 = 8788 - 4000 = Rs. 4788
∴ Difference = 4788 - 3600 = Rs. 1188