Question
What will be the difference between the SI and CI @
10%p.a on a sum of Rs. 9000 for 4 years?Solution
S.I = (P x R x T) / 100 = ( 9000 x 10 x 4)/100 = Rs. 3600 CI = P (1 + R/100) t – P CI = 9000 [1 + 10/100]⁴ _ 9000 CI = 9000 x 11/10 x 11/10 x 11/10 x 11/10 – 9000 = 13176.9 - 9000 = Rs.4176.9 Difference = C.I – S.I = 4176.9 -3600 = Rs. 576.9
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