When difference between compound and simple interest for three years is ₹93 at 10% interest per annum, the principal is ₹______.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 3000.
Difference (CI – SI for 3 years) = P × (r² × (r + 300)) / 100³
Given: Difference = 93, r = 10%
Use formula: P × (10² × (10 + 300)) / 100³ = 93
P × (100 × 310) / 1000000 = 93
P × 31000 / 1000000 = 93
P = (93 × 1000000) / 31000 = ₹3000