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ATQ, Simple interest = Sum × (rate of interest/100) × (time in years) Simple interest earned in three years = 25,000 × (12/100) × 3 = Rs. 9,000\ Compound interest earned in three years: = 25,000 × {1 + (12/100)}³ - 25,000 = 25,000 × (1.12)³ - 25,000 = 25,000 × 1.404928 - 25,000 = Rs. 35,123.2 - 25,000 = Rs. 10,123.2 So, required difference = 10,123.2 - 9,000 = Rs. 1,123.2
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