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