When difference between compound and simple interest for three years is ₹124 at 10% interest per annum, the principal is ₹______
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 4000.
Difference (CI – SI) for 3 years = P × (R/100)² × (300 + R)/100
124 = P × (10/100)² × (300 + 10)/100
124 = P × (1/100) × (310/100)
124 = P × 310 / 10000
P = 4000