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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 |
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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 |
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