Question

The difference between simple and compound interest on a sum for $3$ years at $5$% p.a. is $Rs.76.30$. Find the sum.

• A. $8,000$
• B. $10,000$
• C. $12,000$
• D. $15,000$

Answer 1

Answer: (B)

$10,000$

Let the sum $=P$
Simple Interest for three years $=P\times \frac{5}{100}\times 10=0.15P$
$CI=P{(1+\frac{5}{100})}^3-P$
$=P(1.05{)}^3-P$
$1.15763P-P=0.15763P$
Difference between compound interest and simple interest
$CI-SI=0.15763P-0.15P$
$=0.00763P$
$0.00763P=76.30$
$P=10,000$.