When difference between compound and simple interest for three years is ₹228 at 4% interest per annum, the principal is ₹______
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 46875.
CI − SI (3 years) = ₹228
Rate = 4% per annum
CI − SI (3 years) = P × (R/100)² × (3R + 100)/100
→ 228 = P × (4/100)² × (112/100)
→ 228 = P × (16 × 112) / 100000
→ 228 = P × 1792 / 100000
→ P = (228 × 100000) / 1792
→ P = ₹46,875