Question

If the compound interest on a certain sum for three years at $10\%$ is Rs. $993$, What would be the simple interest on the same sum at the same rate for the same time ?

• A. Rs. $930$
• B. Rs. $920$
• C. Rs. $900$
• D. Rs. $890$

Answer 1

The correct option is C Rs. $900$

Given, $993=P$ $[{(1+\frac{10}{100})}^3-1]$

$\Rightarrow 993=P[{\left(\frac{11}{10}\right)}^3-1]$

$\Rightarrow 993=P\left[\frac{1331-1000}{1000}\right]$
$P=\frac{993\times 1000}{331}\Rightarrow P=$ Rs. $3000$
$\therefore S.I.=Rs.\frac{3000\times 3\times 10}{100}$ $=$ Rs. $900$