When difference between compound and simple interest for three years is ₹183 at 5% interest per annum, the principal is ₹______
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 24000 .
Difference = 183, Rate = 5%, Time = 3 years
Difference = (P × R² × (R + 3)) / 1000000
⇒ 183 = (P × 25 × 8) / 1000000
⇒ 183 = (200P) / 1000000
P = (183 × 1000000) / 200 = 24,000