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Simple interest and compound interest (compounding annually) on a principal at a certain rate of interest for 2 years is Rs. 28800 and Rs.…

3416Medium DSSSB TGT Computer Science 0 replies 1 views

Simple interest and compound interest (compounding annually) on a principal at a certain rate of interest for 2 years is Rs. 28800 and Rs. 36000 respectively. What is the principal?

ARs. 30000
BRs. 28800
CRs. 29750
DRs. 28850

Correct answer: B

Explanation

SI for 1 year = 14400. CI − SI = 7200 is the interest on the first year’s interest, so rate = 7200 ÷ 14400 = 50 percent. Principal = 14400 ÷ 0.5 = Rs. 28800.

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