Let x be the compound interest at the end of 3 years on a sum of ₹1000 at the rate of 10% compounded annually and y be the simple interest at the end of 3 years on a sum of ₹1000 at the annual rate of 11%. What is the difference between x and y?

Question

Accepted Answer

₹1. CI: Amount = 1000(1.1)³ = 1000 × 1.331 = 1331. So x = 331. SI: y = 1000 × 11 × 3 / 100 = 330. Difference x - y = 331 - 330 = ₹1.

Let x be the compound interest at the end of 3 years on a sum of ₹1000 at the rate of 10% compounded annually and y be the simple interest at the end of 3 years on a sum of ₹1000 at the annual rate of 11%. What is the difference between x and y?

Explanation

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