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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?
Most Upvoted Answer
On what sum will the difference between the simple and compound intere...
Solution:
Given,
Time (n) = 3 years
Rate of interest (r) = 5%
Let the principal be P
The formula for simple interest is:
SI = Pnr/100
Where n is the time period and r is the rate of interest.
The formula for compound interest is:
CI = P(1+r/100)^n - P
Given that the difference between the simple and compound interest for 3 years at 5% per annum is Rs. 12.20, i.e.,
CI - SI = 12.20
Substituting the values, we get:
P[(1+5/100)^3 - 1] - P(3)(5/100) = 12.20
Simplifying the above equation, we get:
P(0.157625) - P(0.15) = 12.20
0.007625P = 12.20
P = 1600
Therefore, the sum is Rs. 1600.
Hence, the option (a) Rs. 1600 is the correct answer.
Given,
Time (n) = 3 years
Rate of interest (r) = 5%
Let the principal be P
The formula for simple interest is:
SI = Pnr/100
Where n is the time period and r is the rate of interest.
The formula for compound interest is:
CI = P(1+r/100)^n - P
Given that the difference between the simple and compound interest for 3 years at 5% per annum is Rs. 12.20, i.e.,
CI - SI = 12.20
Substituting the values, we get:
P[(1+5/100)^3 - 1] - P(3)(5/100) = 12.20
Simplifying the above equation, we get:
P(0.157625) - P(0.15) = 12.20
0.007625P = 12.20
P = 1600
Therefore, the sum is Rs. 1600.
Hence, the option (a) Rs. 1600 is the correct answer.
Community Answer
On what sum will the difference between the simple and compound intere...
(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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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?
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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? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about 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? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about 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? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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