*What is the difference between compound interests for 2 years and 3 years for Rs. 500 at 10% rate compounded annually?*
By Lyla

*What is the difference between compound interests for 2 years and 3 years for Rs. 500 at 10% rate compounded annually?*

1️⃣ ₹ 105
2️⃣ ₹60.50
3️⃣ ₹ 505.50
4️⃣ ₹ 165.50​

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Lyla

2 thoughts on “*What is the difference between compound interests for 2 years and 3 years for Rs. 500 at 10% rate compounded annually?*<br /><br”

  1. Answer:

    (b) Rs. 60.50 is the correct answer.

    Step-by-step explanation:

    (i) For 2 years

    Given;

    P = 500

    T = 2 years

    R = 10%

    A = P (1+R/100)^T

    A = 500( 1+10/100)^2

    A = 500(110/100)^2

    A = 500 × 110/100 × 110/100

    A = 605

    CI = A – P

    CI = 605 – 500

    CI = 105 for 2 years

    (ii) For 3 years

    Given;

    P = 500

    T = 3 years

    R = 10%

    A = P(1+R/100)^T

    A = 500(1+10/100)^3

    A = 500(110/100)^3

    A = 500 × 110/100 × 110/100 × 110/100

    A = 665.5

    CI = A – P

    CI = 665.5 – 500

    CI = 165.5

    Difference = For 3 years – For 2 years

    Difference = 165.5 – 105

    Difference = 60.5

    Hence , (b) Rs. 60.50 is the correct answer.

    Hope it helps!!

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