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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 in Rs. 48, then the principal 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...
Here P = ?, R = 20%, T = 3 year Difference Rs. 48


ci = A-P

ci = 





On solving P = 375.
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Most Upvoted Answer
If the difference between the simple interest and compound interest on...
Given data:
Rate of interest= 20% per annum
Time= 3 years
Difference between simple interest and compound interest= Rs. 48

To find: Principal amount

Calculation:
Let the principal amount be P.

Simple Interest= P×R×T/100
= P×20×3/100
= 0.6P

Compound Interest= P (1+R/100)T - P
= P(1+20/100)^3 - P
= P×1.728 - P
= 0.728P

Given, the difference between the simple interest and compound interest on some principal amount at 20% per annum for 3 years in Rs. 48
=> Compound Interest - Simple Interest= Rs. 48
=> 0.728P - 0.6P= Rs. 48
=> 0.128P= Rs. 48
=> P= Rs. 375

Therefore, the principal amount is Rs. 375.

Answer: Option C. Rs. 375
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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 in Rs. 48, then the principal amount must bea)Rs. 550b)Rs. 500c)Rs. 375d)Rs. 400Correct answer is option 'C'. Can you explain this answer?
Question Description
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