Find the difference between the simple interest and the compound interest payable annually on a sum of Rs.6,500 at 7% per annum for 3 years. (Correct to two decimal places.)

Rs.97.78

Principal(P)=6500 Rs

Time(T)= 3 years

Rate  = 7%

by Formulae

Let D = difference of compound interest and simple interest for 3 years

D = \(\frac{PR2}{1002}\) × (\(\frac{R+300}{100}\))

D =\(\frac{6500×7×7}{100×100}\)×(\(\frac{7+300}{100}\))

D = 97.7795

D = 97.78