document.write( "Question 885196: On what sum of money wil the difference between thecompound interest and simple interest for. 3 yrs be equal to Rs 930 if the rate of i charged for both 10%pa \n" ); document.write( "

Algebra.Com's Answer #535020 by KMST(5328) $\"\"$ $\"About$

You can put this solution on YOUR website!
$\"x\"$ = amount initially deposited.
\n" ); document.write( "
\n" ); document.write( "For $\"3\"$ years at $\"%2210+%25%22=0.10\"$ simple interest,
\n" ); document.write( "the interest earned will be $\"0.10x%2A3=0.30x\"$ .
\n" ); document.write( "
\n" ); document.write( "For $\"3\"$ years at $\"%2210+%25%22=0.10\"$ interest compounded yearly,
\n" ); document.write( "the final balance will be $\"x%2A%281%2B0.10%29%5E3=x%2A1.1%5E3=1.331x\"$ .
\n" ); document.write( "The interest earned would be $\"1.331x-x=0.331x\"$ .
\n" ); document.write( "
\n" ); document.write( "The difference in interest earned between the two investments would be
\n" ); document.write( " $\"0.331x=0.30x=0.031x\"$
\n" ); document.write( " $\"0.031x=930\"$ --> $\"x=930%2F0.031\"$ --> $\"highlight%28x=30000%29\"$ .
\n" ); document.write( "
\n" ); document.write( "In 3 years, if the different between simple 10% interest and 10% compounded yearly is Rs 930, for an invested sum of money of Rs $\"highlight%28%2230%2C000%22%29\"$ (thirty thousand). \n" ); document.write( "

\n" );