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The difference between CI and SI on a certain sum of money at 10% per annum for 3 years is Rs. 620. Find the principal if the interest is compounded annually.
- ARs. 25000
- BRs. 15000
- CRs. 27500
- DRs. 20000
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Discussion 1
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CCommunity
Suppose principal is Rs. P
r = 10%, t = 3 years and [CI – SI] = Rs. 620
⇒ 620 = P[1 + 10/100]3 – P – [P × 10 × 3]/100
⇒ 620 = 1.331P – P – 0.3P
⇒ 0.031P = 620
⇒ P = 20000
∴ Principal = Rs. 20000
r = 10%, t = 3 years and [CI – SI] = Rs. 620
⇒ 620 = P[1 + 10/100]3 – P – [P × 10 × 3]/100
⇒ 620 = 1.331P – P – 0.3P
⇒ 0.031P = 620
⇒ P = 20000
∴ Principal = Rs. 20000