The difference between simple and compound interest on a sum of money…

Question

The difference between simple and compound interest on a sum of money at 20% per annum for 3 years is Rs. 48. What is the sum?

Accepted Answer

Option C. Rs. 375. Answer & Solution Answer: Option C Solution: & Let\, sum\, is\,P. & The\, difference\, between\, compound\, interest\, and & \, simple\, interest\, over\, three\, years\, is\, given\, by & = P ( r100 )2 × \ ( r100 ) + 3 \ & 48 = P × ( 20100 )2 × \ ( 20100 ) + 3 \ & 48 = P × 4100…