Question

Difference between the simple and compound interest on a certain sum for 3 years at 10% per annum is Rs. 63.86. Then the sum is

• A. Rs. 2,600
• B. Rs. 2,006
• C. Rs. 2,060
• D. Rs. 2,080

Answer 1

Answer: (C)

Rs. 2,060

Let the sum of money be Rs.x

Rate of interest=10%

Time=3 years

$S.I=\frac{x\times 10\times 3}{100}=\frac{3x}{10}$

$C.I=x\left\{\right(1+\frac{10}{100}{)}^3-1\}$

$\Rightarrow x\{\frac{1331}{1000}-1\}$

$\Rightarrow \frac{331x}{1000}$

According to the question

$\Rightarrow \frac{331x}{1000}-\frac{3x}{10}=63.86$

$\Rightarrow \frac{331x-300x}{1000}=63.86$

$\Rightarrow 31x=63860$

$\Rightarrow x=\frac{63860}{31}\Rightarrow Rs.2060$