Question

A sum of Rs 1000 after 3 years at compound interest becomes a certain amount that is equal to the amount that is the result of a 3-year depreciation from Rs 1728. Find the difference between the rates of C.I. and depreciation. (Given C.I is 10% p.a) (Approximately)

• A. 3.33%
• B. 0.66%
• C. 3%
• D. 2%

Answer 1

The correct option is D 2%

The amount @ 10% C.I could become Rs 1331. Also, Rs 1728 depreciated at R% has to become Rs 1331. Thus, 1728 $\times$ ${\left[\frac{(100-R)}{100}\right]}^3=1331$ (approximately).
The closest value of R = 8%
Thus, the difference is 2%.