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What will be the difference between simple interest and compound interest @ 10% per annum on a sum of Rs. 1000 after 3 years?

  • A.Rs. 31
  • B.Rs. 32.10
  • C.Rs. 40.40
  • D.Rs. 64.10

Answer: A

S.I. = Rs. [(1000 x 10 x 3) / 100] = Rs. 300
C.I. = Rs. [1000 x (1 + (10/100))⊃3; - 1000] = Rs. 331
Difference = Rs. (331 - 300) = Rs. 31

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