Question

If the difference between C.I and S.I for three years is Rs. 620. If rate of interest is 10% then find principal?
1. 30000
2. 20000
3. 15000
4. 32000

Answer 1

Correct Answer - Option 2 : 20000

Given:

The difference between C.I and S.I for three years = 620

Rate of interest = 10%

Formula used:

The difference between C.I and S.I for three years = P(R/100)²(3 + R/100)

Calculation:

P(10/100)²(3 + 10/100) = 620

⇒ P(1/10)² × 31/10 = 620

⇒ P × 1/100 = 200

∴ Principal is 20000