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Nitella [24]
3 years ago
9

The difference between the simple and compound interest for a certain sum of money of 3 years at 5% per annum is Rs.61.0. Find t

he sum
Mathematics
1 answer:
miss Akunina [59]3 years ago
7 0

5% interest compounded annually for 3 years multiplies the initial balance by

... 1.05^3 = 1.157625

5% simple interest for 3 years multiplies the initial balance by 1 + 3*0.05 = 1.15.

The difference of these multipliers is

... 1.157625 - 1.15 = 0.007625

If the difference in account balance is Rs 61.00, then the invested principal amount P is

... P*0.007625 = 61.00

,.. P = 61.00/0.007625 = 8000.00

The sum of money is Rs 8000.

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