The difference between the compound interest and simple interest on ₹10,000/-…
2023
The difference between the compound interest and simple interest on ₹10,000/- for 3 years at 10% per annum is:
- A.
310
- B.
300
- C.
200
- D.
430
Attempted by 9 students.
Show answer & explanation
Correct answer: A
Given Principal (P) = ₹10,000, Rate (R) = 10%, Time (T) = 3 years.
Simple Interest (SI) = (P × R × T) / 100 = (10,000 × 10 × 3) / 100 = ₹3,000.
Compound Interest (CI) = P(1 + R/100)^n - P = 10,000(1 + 10/100)^3 - 10,000 = 10,000(1.1)^3 - 10,000 = 13,310 - 10,000 = ₹3,310.
Difference = CI - SI = 3,310 - 3,000 = ₹310.