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The difference between C.I and S.I on a certain sum of money invested for 3 years at 6%p.a is RS .110.16 The sum is?
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The difference between C.I and S.I on a certain sum of money invested ...
Calculation of Principal Amount using Compound Interest and Simple Interest


Giving the Values


  • Principal Amount = X

  • Rate of Interest = 6%

  • Time = 3 years

  • Compound Interest = CI

  • Simple Interest = SI

  • CI - SI = RS. 110.16



Formula for Simple Interest and Compound Interest


  • Simple Interest = (P * R * T) / 100

  • Compound Interest = P(1 + (R/100))^T - P



Calculation

Using the above formulas, we can calculate the values of simple interest and compound interest.


  • SI = (X * 6 * 3) / 100 = 0.18X

  • CI = X(1 + (6/100))^3 - X = 0.191X



Now, as per the given condition: CI - SI = RS. 110.16

Therefore, 0.191X - 0.18X = RS. 110.16

0.011X = RS. 110.16

X = RS. 10000


Conclusion

The principal amount invested is RS. 10000
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The difference between C.I and S.I on a certain sum of money invested ...
10000
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The difference between C.I and S.I on a certain sum of money invested for 3 years at 6%p.a is RS .110.16 The sum is?
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