Multiple choice

If the difference between the simple interest and compound interest on a certain sum of money at 10% annual rate of interest in 3 years is Rs.93. Find the sum.

  1. Rs.3000

  2. Rs.9000

  3. Rs.8000

  4. Rs.5000

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For the difference between CI and SI for 3 years at rate r%: CI - SI = P×(r/100)²×(300+r)/100. Given r=10%, CI-SI=93: 93 = P×(10/100)²×(310)/100 = P×0.01×3.1 = 0.031P. So P = 93/0.031 = Rs.3000. Alternatively, using the approximation CI-SI≈P×r²×(n-1)/10000 for n years: 93≈P×100×2/10000=P×0.02, so P≈4650. Using exact formula gives P=3000. Option A is correct.

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