The bars compare the amount on ₹ 10,000 under simple interest (SI) and compound interest (CI, compounded annually) at the same rate. By how much will the CI amount be more than the SI amount at the end of Year 3?

Question

Accepted Answer

₹ 310. Year 1 shows ₹ 11,000, so the rate is 10%. SI after 3 years: 10000 + 3 × 1000 = ₹ 13,000 . CI: 10000 × ( 1110 )^3 = ₹ 13,310 . Difference = ₹ 310 .

The bars compare the amount on ₹ 10,000 under simple interest (SI) and compound interest (CI, compounded annually) at the same rate. By how much will the CI amount be more than the SI amount at the end of Year 3?

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