1.

If the rate of interest is 20% for 2 years, the difference between compound interest and simple interest is Rs. 940 then find the principle.1. Rs. 33,5002. Rs. 44,5003. Rs. 23,5004. Rs. 25,400

Answer» Correct Answer - Option 3 : Rs. 23,500

Given:

Difference between compound interest and simple interest = Rs. 940

Time = 2 years

Rate of interest = 20%

Concept used:

D = P × (R/100)2

Where,

D → Difference between C.I. and S.I. for 2 years 

P → Principal 

R → Rate 

Calculations:

D = P × (R/100)2

⇒ 940 = P × (20 × 20)/(100 × 100)

⇒ 940 = P × 1/25

P = 940 × 25 = Rs. 23,500

∴ The principal is Rs. 23,500



Discussion

No Comment Found

Related InterviewSolutions