Arithmetichard · Past Paper

The difference between compound interest and simple interest on a sum for 3 years at 10% per annum is Rs 31. Find the sum.

ARs 1000
BRs 1100
CRs 1200
DRs 1500

✓ Correct Answer: ARs 1000

Difference for 3 yrs = P(R/100)^2 * (3 + R/100). 31 = P(0.01)(3.1) => 31 = 0.031P => P = 1000.

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