Difference between CI and SI on a sum of Rs. $8{,}000$ at $10\%$ p.a. for $3$ years (compounded annually) is

Difference between CI and SI on a sum of Rs. $8{,}000$ at $10\%$ p.a. for $3$ years (compounded annually) is
  1. Rs. $200$
  2. Rs. $244$
  3. Rs. $248$
  4. Rs. $260$

Solution

SI $= \dfrac{8000 \cdot 10 \cdot 3}{100} = 2400$. CI: $A = 8000 \times (1.1)^{3} = 8000 \times 1.331 = 10648$, CI $= 2648$. Difference $= 2648 - 2400 = 248$.

Asked in: IMO

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