Question

The compound interest on a certain sum in $3$ years at the rate of $8$ $\%$ per annum is how much percentage more than its simple interest?

Answer 1

Let $P=100$, Time $\left(n\right)=3$ years, Rate $\left(r\right)=8\%$
Amount $=P{(1+\frac{r}{100})}^3$

$=100{(1+\frac{8}{100})}^3$
$=100\times 1.08\times 1.08\times 1.08$
$=126$

CI $=A-P=126-100=26$
Now, Simple Interest $=\frac{PTR}{100}$
$=\frac{(100\times 3\times 8)}{100}=24$
Difference $=26-24=2$
CI more than SI $=\frac{(2\times 100)}{24}=8.33\%$