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    Question

    A man deposited Rs. 13000 at 10% compound interest,

    compounded annually while Rs. 11500 at 13% simple interest per annum. What will be the difference between the compound interest and the simple interest earned by him after 3 years?
    A Rs 218 Correct Answer Incorrect Answer
    B Rs 182 Correct Answer Incorrect Answer
    C Rs 365 Correct Answer Incorrect Answer
    D Rs 458 Correct Answer Incorrect Answer

    Solution

    Compound interest earned by the man in 3 years = 13000 ร— {(1 + 10/100)3 โ€“ 1)} = 13000 ร— 0.331 = Rs. 4303 Simple interest earned by the man in 3 years = 11500 ร— 0.13 ร— 3 = Rs. 4485 Required difference = 4485 โ€“ 4303 = Rs. 365

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