SOLUTION: 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

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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
Answer by KMST(5328) About Me  (Show Source):
You can put this solution on YOUR website!
x= amount initially deposited.

For 3 years at %2210+%25%22=0.10 simple interest,
the interest earned will be 0.10x%2A3=0.30x .

For 3 years at %2210+%25%22=0.10 interest compounded yearly,
the final balance will be x%2A%281%2B0.10%29%5E3=x%2A1.1%5E3=1.331x .
The interest earned would be 1.331x-x=0.331x .

The difference in interest earned between the two investments would be
0.331x=0.30x=0.031x
0.031x=930-->x=930%2F0.031-->highlight%28x=30000%29.

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).