If at same rate of interest, in 2 years, the simple interest is ₹40 and compound interest is ₹65, then what is the principal (in ₹)?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 16.
SI for 2 years = ₹40
(P × r × 2)/100 = 40
P × r = 2000
CI = P(1 + r/100)2 − P = 2Pr/100 + Pr2/10000
40 + Pr2/10000 = 65
Pr2 = 250000
P (2000/P)2 = 250000
P = 4000000/250000 = 16