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If the difference between the simple and the compound interests on same principal amount at 10% for 3 years is Rs. 837, then the principal amount must be
  • a)
    Rs. 27000
  • b)
    Rs. 25000
  • c)
    Rs. 23000
  • d)
    Rs. 29000
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
If the difference between the simple and the compound interests on sam...
Let the principal amount be ‘P’ and CI, SI be the compound and simple interests respectively.
According to the given information,
CI - SI = Rs. 837
Time period, T = 3 years
Rate of interest, R = 10%
We know that,
SI = (P × T × R)/100
Also,
We know the formula for compound interest (CI),
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If the difference between the simple and the compound interests on same principal amount at 10% for 3 years is Rs. 837, then the principal amount must bea)Rs. 27000b)Rs. 25000c)Rs. 23000d)Rs. 29000Correct answer is option 'A'. Can you explain this answer?
Question Description
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