The difference between the amount of compound interest and simple int…

Question

The difference between the amount of compound interest and simple interest accrued on an amount of Rs. 26000 at the end of 3 years is Rs. 2994.134. What is the rate of interest p.c.p.a ?

Accepted Answer

Option B. 19%. Answer & Solution Answer: Option B Solution: Let the R% p.a. Then, [ 26000 × ( 1 + R100 )^3 - 26000 ] - ( 26000 × R × 3100 ) = 2994.134 26000 [ ( 1 + R100 )^3 - 1 - 3 R100 ] = 2994.134 26000 [ ( 100 - R )^3 - 1000000 - 30000 R1000000 ] = 2994.134 26 [ \ 1000000 + R^3 + 300 R ( 1…