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If the difference between compound and simple interest on a certain sum of money for 3 years at 2% p.a. is Rs. 604, what is the sum?
  • a)
    5,00,000
  • b)
    4,50,000
  • c)
    5,10,000
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
If the difference between compound and simple interest on a certain su...
Solve through trial and error using the values of the options. Option (a) 500000 fits the situation perfectly as the SI = Rs. 30000 while the Cl = 30604.
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Most Upvoted Answer
If the difference between compound and simple interest on a certain su...
Given,
Difference between compound and simple interest for 3 years at 2% p.a. = Rs. 604

Let the Principal amount be P.

Formula used:
Compound Interest = P(1 + R/100)^n - P
Simple Interest = P * R * n / 100

Where,
R = Rate of Interest
n = Time period

Calculation:
As per the given information,
Compound Interest - Simple Interest = Rs. 604
=> P(1 + 2/100)^3 - P * 2 * 3 / 100 = 604
=> P(1.02)^3 - P * 0.06 = 604
=> P(1.061208) - P * 0.06 = 604
=> P(1.001208) = 604 + 0.06P
=> P = 604 / 0.001208 + 0.06
=> P = Rs. 5,00,000

Therefore, the sum is Rs. 5,00,000.
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If the difference between compound and simple interest on a certain sum of money for 3 years at 2% p.a. is Rs. 604, what is the sum?a)5,00,000b)4,50,000c)5,10,000d)None of theseCorrect answer is option 'A'. Can you explain this answer? for Quant 2025 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about If the difference between compound and simple interest on a certain sum of money for 3 years at 2% p.a. is Rs. 604, what is the sum?a)5,00,000b)4,50,000c)5,10,000d)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Quant 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the difference between compound and simple interest on a certain sum of money for 3 years at 2% p.a. is Rs. 604, what is the sum?a)5,00,000b)4,50,000c)5,10,000d)None of theseCorrect answer is option 'A'. Can you explain this answer?.
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