The is Compound interest Rs. 104 for 2 years is Rs.100 or the Same on a Certain Sum and simple interest period. Find the approximate difference bo Compound interest and simple interest of the Same Sum for 3 years

To solve this problem, we need to find the difference between compound interest (CI) and simple interest (SI) for a certain sum over 3 years. Given data includes:

- Compound interest for 2 years: Rs. 104
- Simple interest for 2 years on the same sum: Rs. 100

### Step 1: Calculate the rate of interest per annum
We can use the relationship between CI and SI to find the rate of interest.

The formula for compound interest after 2 years (with annual compounding) is given by:
\[
A = P \left(1 + \frac{R}{100}\right)^2
\]
Where:
- \( A \) is the amount after 2 years.
- \( P \) is the principal.
- \( R \) is the rate of interest.

The interest earned (CI) is:
\[
CI = A - P
\]

The formula for simple interest is:
\[
SI = \frac{P \times R \times T}{100}
\]
Where:
- \( T \) is the time in years.

Given that SI for 2 years is Rs. 100:
\[
\frac{P \times R \times 2}{100} = 100
\]
\[
P \times R = 5000
\]

### Step 2: Calculate Compound Interest for 3 years
Using the relation \(P \times R = 5000\), we first need to find \(R\).

Now we can approximate the difference between the compound interest and simple interest over three years for same

Compound interest Rs. 104 for 2 years is Rs.100 or the Same on a Certain Sum and simple interest period. Find the approximate difference between Compound interest and simple interest of the Same Sum for 3 years.

Learn how to calculate the difference between compound interest and simple interest for a certain sum over 3 years. This solution explains how to use basic interest formulas with Rs. 104 compound interest and Rs. 100 simple interest over 2 years. Suitable for Grades 8-10 students.

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