1.

Find the principal, if the difference between compound and simple interest on a certain sum of money is Rs.360 at 6% per annum for 2 years.1. Rs.1,00,0002. Rs 2,00,0003. Rs.35,0004. Rs.40,000

Answer» Correct Answer - Option 1 : Rs.1,00,000

Given

Compound interest - Simple interest = 360

Formula used

If the difference between the compound and simple interest is given and rate of interest is given, then formula for calculating principal is as follows:

C.I - S.I = P(R/100)2

P, R and T are principal and rate.

Calculation

360 = P(6/100)2

(360 × 100 × 100)/(6 × 6) = P

P = Rs.1,00,000

∴ The principal is Rs.1,00,000.



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