When difference between compound and simple interest for three years is ₹155 at 10% interest per annum, the principal is ₹______.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 5000.
Difference between CI and SI for 3 years = ₹155
Rate = 10% per annum
Time = 3 years
The difference (CI - SI) for 3 years = P × ()2()
⇒ 155 = P × ()2()
⇒ 155 = P × (1/100)(31/10)
⇒ P = 5000