Question
Determine the difference between
the compound interest and the simple interest earned by Vinay, given that he lent Rs. 64,000 at an interest rate of 10% for 3 years under both interest types.Solution
ATQ, Compound Interest earned by the man = 64000 × {(1 + 10/100)3 – 1} = Rs. 21184 Simple Interest earned by the man = (64000 × 10 × 3)/100 = Rs. 19200 So, required difference = 21184 – 19200 = Rs.1984
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