A sum of 6,000 is deposited for 3 years at 5% per annum

A sum of 6,000 is deposited for 3 years at 5% per annum compound interest (compounded
annually). The difference of interests for 3 and 2 years will be

Here , Principal ( P ) = ₹ 6000 , Time = 3 years , Rate = 5%
Using the given formula ,

C.I. = P			1 +	R		^T	− 1
				100

C.I. after 3 years = 6000			1 +	5		³	− 1
				100

= 6000		9261 − 8000
		8000

= 6000 ×	1261	= ₹ 945.75
	8000

Again , Principal = ₹ 6000 , Time = 2 years , Rate = 5%

CI after 2 years = 6000			1 +	5		²	− 1
				100

= 6000		441 − 400
		400

= 6000 ×	41	= ₹ 615
	400

∴ Required difference = CI after 3 years - CI after 2 years
Required difference = ₹ (945.75 – 615) = ₹ 330.75