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If the difference between the simple interest and compound interest on some principal amount at 20% per annum for 3 years is ` Rs. 48, then the principle amount must be 
  • a)
    Rs. 550
  • b)
    Rs. 500
  • c)
    Rs. 375
  • d)
    Rs. 400
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
If the difference between the simple interest and compound interest on...
Solve using options. If we try 500 (option b) for convenience, we can see that the difference between the two is 64 (as the SI would amount to 300 and CI would amount to 100 + 120 + 144 = 364).
Since, we need a difference of only 48 we can realize that the value should be 3/4th of 500. Hence, 375 is correct
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If the difference between the simple interest and compound interest on some principal amount at 20% per annum for 3 years is ` Rs. 48, then the principle amount must bea)Rs. 550b)Rs. 500c)Rs. 375d)Rs. 400Correct answer is option 'C'. Can you explain this answer?
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