4 Views

Question : What is the difference (in Rs.) between the compound interest and simple interest for 3 years on a Principal of Rs.1000 at 20% per annum?

Option 1: Rs. 64

Option 2: Rs. 120

Option 3: Rs. 128

Option 4: Rs. 136


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Rs. 128


Solution : Given: Principal = Rs. 1000
Rate = 20%
Time = 3 years
Solve by using the formula for 3 years: $D=P×\frac{(300+R)R^{2}}{100^{3}}$, where $D$ = Difference between compound interest and simple interest, $P$ = Principal, $R$ = Rate of interest.
Putting the values in the given formula, we have,
$D=1000×\frac{(300+20)20^{2}}{1000000}$
⇒ $D=\frac{1000×320×400}{1000000}$
⇒ $D=32×4$
⇒ $D$ = Rs. 128
Hence, the correct answer is Rs. 128.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books