Let x be the compound interest at the end of 3 years on a sum of ₹1000 at the rate of 10\% compounded annually and y be the simple interest at the end of 3 years on a sum of ₹1000 at the annual rate of 11\%. What is the difference between x and y?

Explanation

Calculate compound interest (x): Amount = 1000(1 + \frac{10}{100})^3 = 1000(1.331) = 1331. Thus, CI = 1331 - 1000 = 331. Calculate simple interest (y): SI = \frac{P \times R \times T}{100} = \frac{1000 \times 11 \times 3}{100} = 330. The difference between x and y is 331 - 330 = 1.

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