A person invested a certain amount at simple interest at the rate of 6 percent annum earning Rs. 900 as an interest at the end of three years. Had the interest been compounded every year. How much more interest would he have earned on the same amount with the same interest after three years?
Correct Answer: Rs. 55.08
Explanation:
Certain sum for the person = (900 x 100)/(6 x 3) =Rs. 5000
∴ Interest on Rs. 5000 by C.I. = 5000(1 +6/100)3 - 5000 = Rs. 955.08
∴ More interest =Rs. (955.08 - 900) = Rs. 55.08
