Question
In 2015, the difference between compound interest and
simple interest for the given time is Rs 20. If the sum is invested for 3 years, what will be the compound interest after 3 years?Solution
SI for 1 year = Rs 400, S.I for 2 years = 2 × 4 00 = Rs 800 Using formula for 2 years, Rate = 2 × (CI - SI)/SI × 100 Rate = (2 × 20/800) × 100 = 5% Now, PR2/1002 = CI - SI P × 5 2/ 100 2 = 20 Principal = Rs 8,000 So amount after 3 years = 8000 [1 + 5/100]3 = Rs 9261 C.I = 9261 - 8000 = Rs 1261
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