The difference between the CI and SI on a sum for 2 years at 15% p.a. is ₹360. What is the principal?
Show answer & explanation
Correct answer: B
Explanation
Interest Rate = 15% per annum
Time = 2 years
CI − SI = 360
According to the formula:
For 2 years
CI − SI = P × (R/100)²
360 = P × (15/100)²
360 = P × (225/10000)
P = (360 × 10000) / 225 = 16000
Principal = ₹16,000