When difference between compound and simple interest for three years is ₹217 at 10% interest per annum, the principal is ₹______
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 7000
Difference between CI and SI for 3 years = P × (r/100)² × (3 + r/100)
217 = P × (10/100)² × (3 + 10/100)
217 = P × (1/100) × (3 + 0.1)
217 = P × (1/100) × 3.1
P = 217 × 100 / 3.1
P = ₹7000