If at same rate of interest, in 2 years, the simple interest is ₹40 and compound interest is ₹56, then what is the principal (in ₹)?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 25.
SI = 40
CI = 56
1st year : 2nd year
20 : 20
16
R = (16/20) × 100 = 80%
SI = PRT/100
⇒ 40 = (P × 80 × 2)/100
⇒ P = 25