Multiple choice

What will be the approximate difference in the simple and compound interest accrued on an amount of Rs. 2600/ @ 15 p.c.p.a at the end of three years?

  1. 167

  2. 194

  3. 202

  4. 172

  5. 184
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

SI = P×R×T/100 = 2600×15×3/100 = 1170. Amount after 3 years with CI: A = P(1 + R/100)^T = 2600(1.15)³ = 2600×1.520875 = 3954.275. CI = 3954.275 - 2600 = 1354.275. Difference = CI - SI = 1354.275 - 1170 = 184.275 ≈ 184.

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