Question

When difference between compound and simple interest for three years is ₹183 at 5% interest per annum, the principal is ₹ ______________.

• A. 24420
• B. 23425
• C. 24000
• D. 25200

Answer 1

Answer:

C. 24000

For 3 years, the difference between Compound Interest (CI) and Simple Interest (SI) is:

$\text{Difference} = P \left(\frac{R}{100}\right)^2 \left(3 + \frac{R}{100}\right)$

Substitute values:

• Difference = 183

• R = 5%

$183 = P \times \left(\frac{5}{100}\right)^2 \times \left(3 + \frac{5}{100}\right)$

$183 = P \times \frac{25}{10000} \times 3.05$

$183 = P \times 0.007625$

$P = \frac{183}{0.007625} = 24000$

=₹24,000