If the difference between the compound interest and simple interest on a sum of 5% rate of interest per annum for three years is Rs. 36.60, then the sum is :

Explanation:

5 %=1\20

Let sum =(20)^3=8000 units

Time = 3 years

Note: In the quetion time is 3 years hence for making calculation easier We assumng sum 8000 units.

According to the question

61 units= Rs.36.60

8000 units= Rs.36.60×8000\61

Sum= Rs.4800

Hence,Required sum= Rs.4800