Question

    A person deposited a sum at 7% simple interest per annum

    for 3 years. The interest he earned is Rs. 180 more than the compound interest he would have earned on Rs. 3000 at 9% p.a. for 2 years, compounded annually. What is the principal he deposited on simple interest?
    A Rs.3560.43 Correct Answer Incorrect Answer
    B Rs.3571.43 Correct Answer Incorrect Answer
    C Rs.2561.43 Correct Answer Incorrect Answer
    D Rs.3544.29 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ,

    Given: CI on ₹3000 at 9% p.a. for 2 years (compounded annually): CI = 3000 × [(1 + 9/100)^2 − 1] = 3000 × (1.1881 − 1) = 3000 × 0.1881 = ₹564.30 SI is ₹180 more than CI: SI = 564.30 + 180 = ₹744.30 SI formula: SI = (P × 7 × 3) / 100 = (21P) / 100 Set equal and solve: (21P) / 100 = 744.30 ⇒ P = (744.30 × 100) / 21 ⇒ P = ₹3544.29

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