UGC-NET-Paper1

To find the difference between compound interest (CI) and simple interest (SI) on Rs10,000 for 3 years at 10% per annum, we'll first calculate both interests separately.

For simple interest:
SI = P × R × T / 100
Where:
P = Principal amount (Rs10,000)
R = Rate of interest (10% or 0.1)
T = Time period (3 years)

SI = 10,000 × 0.1 × 3 / 100
SI = 10,000 × 0.3
SI = 3,000

For compound interest:
CI = P × [(1 + R/100)^T - 1]
Where:
P = Principal amount (Rs10,000)
R = Rate of interest (10% or 0.1)
T = Time period (3 years)

CI = 10,000 × [(1 + 0.1)^3 - 1]
CI = 10,000 × [(1.1)^3 - 1]
CI = 10,000 × (1.331 - 1)
CI = 10,000 × 0.331
CI = 3,310

Now, to find the difference:
Difference = CI - SI
Difference = 3,310 - 3,000
Difference = 310

So, the correct answer is indeed option 1, 310.