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    Question

    When difference between compound and simple interest for

    three years is ₹244 at 5% interest per annum, the principal is ₹______
    A 31425 Correct Answer Incorrect Answer
    B 33200 Correct Answer Incorrect Answer
    C 32000 Correct Answer Incorrect Answer
    D 32420 Correct Answer Incorrect Answer

    Solution

    Difference between CI and SI for 3 years = P × (r/100)² × (3 + r/100) 244 = P × (5/100)² × (3 + 5/100) 244 = P × (0.05)² × 3.05 244 = P × 0.0025 × 3.05 244 = P × 0.007625 P = 244 ÷ 0.007625 P = 32,000

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