📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      On a certain principal, the difference between compound

      interest (compounded annually) and simple interest at the same annual rate for 2 years is Rs 72. If the rate of interest is 6% per annum, what is the principal (in rupees)?
      A 24,000 Correct Answer Incorrect Answer
      B 12,000 Correct Answer Incorrect Answer
      C 18,000 Correct Answer Incorrect Answer
      D 20,000 Correct Answer Incorrect Answer

      Solution

      ATQ, Let principal = P, rate = r = 6% = 0.06. For 2 years: Simple interest = P × 2r = 2Pr. Compound interest = P[(1 + r)² − 1] = P(2r + r²). Difference = CI − SI = P(2r + r² − 2r) = P r². So P × (0.06)² = 72 P × 0.0036 = 72 ⇒ P = 72 / 0.0036 = 20,000.

      Practice Next
      More Simple and compound interest Questions
      ask-question