Question

Joseph lent Sunil $Rs.6000$ at $8\%$ per annum simple interest for $3$ years. How much more would he have gained, had he lent it at $8\%$ compound interest?

Answer 1

Simple interest ;

$I=\frac{PTR}{100}=\frac{6000\times 3\times 8}{100}=1440.$

Interest at the end of $3years=1440.$

Compound Interest :

$A=p{(1+\frac{r}{100})}^n=6000{[1+\frac{8}{100}]}^3=7558.272$

Interest $=7558.272-6000=1558.3$

Gain $=15558.3-1440=118.3Rs.$