If at same rate of interest, in 2 years, the simple interest is ₹44 and compound interest is ₹45, then what is the principal (in ₹)?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 484.
Let, principal = P, rate = r
SI in 2 years = = 44
Pr = 2200 …(1)
CI in 2 years = P[(1 + )2 − 1] = 45
⇒ P()(2 + ) = 45
From (1), P() = 22
⇒ 22(2 + ) = 45
⇒ 44 + 0.22r = 45
⇒ r = =
Now, P = = = = 484