When difference between compound and simple interest for three years is ₹186 at 10% interest per annum, the principal is ₹______
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 6000.
Given : Rate = 10% , Time = 3 years , Difference = 186
Difference = ( P × R2 / 1002) × ( 300 + R ) /100
186 = ( P × 102/ 1002) × ( 310 / 100 )
186 = ( P / 100 ) × ( 310 / 100 )
186 = 310P / 10000
P = ( 186 × 10000 ) / 310
P = 6000