2024 · Q47
Let x be the compound interest at the end of 3 years on a sum of ₹ 1000 at the rate of 10% compounded annually and y be the simple interest at the end of 3 years on a sum of ₹ 1000 at the annual rate of 11%. What is the difference between x and y ?
Elementary MathematicsSimple and Compound Interest
- A₹ 16
- B₹ 15
- C₹ 5
- D₹ 1
Explanation
The compound interest is x = 1000(1.1³ − 1) = ₹331, and the simple interest is y = 1000 × 0.11 × 3 = ₹330. Their difference is x − y = ₹1. Hence the answer is option (d).