What will be the difference between the simple interest and compound…

Question

What will be the difference between the simple interest and compound interest accrued on an amount of Rs. 19200 of 3 years @ 12 p.c.p.a. ?

Accepted Answer

Option D. Rs. 862.6176. Answer & Solution Answer: Option D Solution: & S .I . = Rs . ( 19200 × 12 × 3100 ) & \,\,\,\,\,\,\,\,\, = Rs .6912 & C .I . = Rs . [ 19200 × ( 1 + 12100 )^3 - 19200 ] & = Rs . [ ( 19200 × 2825 × 2825 × 2825 ) - 19200 ] & = Rs . ( 16859136625 - 19200 ) & = Rs . ( 26974.6176 - 192…