Question

Find the difference between CI and SI on Rs. $32,000$ at $12\%$ p.a. for $3$ years.

Answer 1

$\begin{array}{c}CI-SI=P\left[{\left(1+r\right)}^n-1-rt\right]\\ =36000\left[{\left(1+\frac{12}{100}\right)}^3-1-\frac{12}{100}\times 3\right]\\ =36000\left[{\left(\frac{28}{25}\right)}^3-1-\frac{9}{25}\right]\\ =1617.408\end{array}$