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      Question

       The difference between compound interest and simple

      interest on a sum for 3 years at 10% per annum is Rs 62. Find the principal.
      A 2000 Correct Answer Incorrect Answer
      B 2520 Correct Answer Incorrect Answer
      C 2650 Correct Answer Incorrect Answer
      D 2200 Correct Answer Incorrect Answer

      Solution

      ATQ, For 3 years at 10%, CI - SI = P[(1 + 10/100)^3 - 1 - 3(10/100)] = P(1.331 - 1 - 0.3) = P(0.031) Given: 0.031P = 62 P = 62 / 0.031 = 2000

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