Correct Answer - Option 2 : 1600
Given:
The difference between the simple interest of 3 years at 8% and that of 2 years at 9% rate of interest is Rs. 96.
Concept Used:
SI = (P × R × T)/100
Calculation:
Let, the principal be P
Interest in first case is (3P × 8)/100 = 24P/100
Interest in 2nd case is (2P × 9)/100 = 18P/100
Accordingly,
24P/100 - 18P/100 = 96
⇒ 6P/100 = 96
⇒ P = 1600
∴ The required principal is Rs. 1600.
