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# On what sum will the difference between the simple and compound interests for 3 years at 5 per cent per annum will be Rs.12.20? (a) Rs.1600 (b) Rs.800 (c) Rs.1200 (d) Rs.1500?

## CAT Question

 Yash Naryani Jul 10, 2020
(OPTION A)
Two approaches ;
1. Calculating manually or
2. On simple interest of 5% for 3 years will be 15% and on compound by calculating you will get 15.7625%.
Now the diff. in the both is 0.7625 which is equal to 12.20.
For principle,    (12.20*100)/0.7625 = 1600

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