Multiple choice

On what sum does the difference between the compound interest and the simple interest for 3 years at 10% p.a. is Rs.31?

  1. Rs.1331

  2. Rs.1000

  3. Rs.1200

  4. Rs.1131
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 3 years at 10%, the difference CI-SI = P[(1.1)^3 - 1 - 3(0.1)] = P[1.331 - 1 - 0.3] = 0.031P = Rs.31, giving P = Rs.1000. The formula is CI-SI = P*r^2*(r+2)/100 for 2 years, extended for 3 years.

Keep practicing — related questions