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If the difference between compound interest and simple interest on a certain sum of money for 3 years at 10% p.a. (for both simple and compound interest) be Rs.1488 then find that sum in rupee.
- a)Rs. 48000
- b)Rs. 31250
- c)Rs. 35500
- d)Rs. 38550
- e)Rs. 35850
Correct answer is option 'A'. Can you explain this answer?
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If the difference between compound interest and simple interest on a c...
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Given:
Difference between compound interest and simple interest for 3 years = Rs.1488
Rate of interest = 10% per annum
To find:
The principal amount (sum of money)
Solution:
Let the principal amount be P.
Calculating Simple Interest:
Simple Interest (SI) = (P * R * T) / 100
Where,
P = Principal amount
R = Rate of interest
T = Time period
For 3 years at 10% per annum,
SI = (P * 10 * 3) / 100 = 3P/10
Calculating Compound Interest:
Compound Interest (CI) = P * [(1 + R/100)^T - 1]
Where,
P = Principal amount
R = Rate of interest
T = Time period
For 3 years at 10% per annum,
CI = P * [(1 + 10/100)^3 - 1] = P * [(11/10)^3 - 1] = P * (1.331 - 1) = 0.331P
Calculating the Difference between Compound Interest and Simple Interest:
Difference = CI - SI = 0.331P - 3P/10 = (0.331P * 10 - 3P) / 10 = (3.31P - 3P) / 10 = 0.31P / 10
According to the given information, the difference between CI and SI is Rs.1488.
Therefore, 0.31P / 10 = 1488
Simplifying the above equation,
0.31P = 1488 * 10
0.31P = 14880
P = 14880 / 0.31
P ≈ Rs. 48000
Conclusion:
The sum of money is approximately Rs. 48000. Hence, option A is the correct answer.
Difference between compound interest and simple interest for 3 years = Rs.1488
Rate of interest = 10% per annum
To find:
The principal amount (sum of money)
Solution:
Let the principal amount be P.
Calculating Simple Interest:
Simple Interest (SI) = (P * R * T) / 100
Where,
P = Principal amount
R = Rate of interest
T = Time period
For 3 years at 10% per annum,
SI = (P * 10 * 3) / 100 = 3P/10
Calculating Compound Interest:
Compound Interest (CI) = P * [(1 + R/100)^T - 1]
Where,
P = Principal amount
R = Rate of interest
T = Time period
For 3 years at 10% per annum,
CI = P * [(1 + 10/100)^3 - 1] = P * [(11/10)^3 - 1] = P * (1.331 - 1) = 0.331P
Calculating the Difference between Compound Interest and Simple Interest:
Difference = CI - SI = 0.331P - 3P/10 = (0.331P * 10 - 3P) / 10 = (3.31P - 3P) / 10 = 0.31P / 10
According to the given information, the difference between CI and SI is Rs.1488.
Therefore, 0.31P / 10 = 1488
Simplifying the above equation,
0.31P = 1488 * 10
0.31P = 14880
P = 14880 / 0.31
P ≈ Rs. 48000
Conclusion:
The sum of money is approximately Rs. 48000. Hence, option A is the correct answer.
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If the difference between compound interest and simple interest on a certain sum of money for 3 years at 10% p.a. (for both simple and compound interest) be Rs.1488 then find that sum in rupee.a)Rs. 48000b)Rs. 31250c)Rs. 35500d)Rs. 38550e)Rs. 35850Correct answer is option 'A'. Can you explain this answer?
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If the difference between compound interest and simple interest on a certain sum of money for 3 years at 10% p.a. (for both simple and compound interest) be Rs.1488 then find that sum in rupee.a)Rs. 48000b)Rs. 31250c)Rs. 35500d)Rs. 38550e)Rs. 35850Correct answer is option 'A'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about If the difference between compound interest and simple interest on a certain sum of money for 3 years at 10% p.a. (for both simple and compound interest) be Rs.1488 then find that sum in rupee.a)Rs. 48000b)Rs. 31250c)Rs. 35500d)Rs. 38550e)Rs. 35850Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the difference between compound interest and simple interest on a certain sum of money for 3 years at 10% p.a. (for both simple and compound interest) be Rs.1488 then find that sum in rupee.a)Rs. 48000b)Rs. 31250c)Rs. 35500d)Rs. 38550e)Rs. 35850Correct answer is option 'A'. Can you explain this answer?.
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