The difference between the compound interest | vedclass

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Question

(A) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $3$ years is given by:$CI - SI = P \left[ \left( \f

Vedclass · Accepted Answer

$61$

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(A) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $3$ years is given by:$CI - SI = P \left[ \left( \frac{R}{100} ight)^3 + 3 \left( \frac{R}{100} ight)^2 ight]$Given:Principal $(P)$ = ₹ $8000$Rate $(R)$ = $5 \%$Time $(n)$ = $3$ yearsSubstituting the values:$CI - SI = 8000 \left[ \left( \frac{5}{100} ight)^3 + 3 \left( \frac{5}{100} ight)^2 ight]$$CI - SI = 8000 \left[ \left( \frac{1}{20} ight)^3 + 3 \left( \frac{1}{20} ight)^2 ight]$$CI - SI = 8000 \left[ \frac{1}{8000} + \frac{3}{400} ight]$$CI - SI = 8000 \left[ \frac{1 + 60}{8000} ight]$$CI - SI = 8000 	imes \frac{61}{8000} = ₹ 61$Thus,the difference is ₹ $61$.

The difference between the compound interest and the simple interest on ₹ $8000$ for $3$ years at $5 \%$ per annum is (in ₹):

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