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.)
Answer & explanation
Correct answer: option 2
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