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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
- a)Rs. 3000
- b)Rs. 3700
- c)Rs. 12000
- d)Rs. 10000
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
The difference between C.I and S.I on a certain sum of money invested ...
Let the principal be P. The rate of interest is 6% per annum, and the time period is 3 years.
So, the sum of money is Rs. 10,000.
Most Upvoted Answer
The difference between C.I and S.I on a certain sum of money invested ...
Calculation of Difference between C.I and S.I
Given:
Time (n) = 3 years
Rate of interest (r) = 6% p.a
Difference between C.I and S.I = Rs. 110.16
Let the principal be P.
Formula:
Compound Interest (C.I) = P[(1 + r/100)^n – 1]
Simple Interest (S.I) = Pnr/100
Difference between C.I and S.I = C.I – S.I
Therefore,
P[(1 + r/100)^n – 1] – Pnr/100 = 110.16
Simplifying the equation, we get
P[(1 + 6/100)^3 – 1 – 6/100] = 110.16
P[(1.06)^3 – 1 – 0.06] = 110.16
P[(1.191016) – 1 – 0.06] = 110.16
P[(0.131016)] = 110.16
P = 110.16/0.131016
P = Rs. 8432
Hence, the principal is Rs. 8432.
Verification:
C.I = P[(1 + r/100)^n – 1]
C.I = 8432[(1 + 6/100)^3 – 1]
C.I = 8432[(1.06)^3 – 1]
C.I = Rs. 1105.16
S.I = Pnr/100
S.I = 8432 × 6 × 3/100
S.I = Rs. 1517.76
Difference between C.I and S.I = C.I – S.I
Difference between C.I and S.I = 1105.16 – 1517.76
Difference between C.I and S.I = Rs. 110.16
Therefore, the calculated principal of Rs. 8432 satisfies the given conditions.
Hence, the correct option is D) Rs. 10000.
Given:
Time (n) = 3 years
Rate of interest (r) = 6% p.a
Difference between C.I and S.I = Rs. 110.16
Let the principal be P.
Formula:
Compound Interest (C.I) = P[(1 + r/100)^n – 1]
Simple Interest (S.I) = Pnr/100
Difference between C.I and S.I = C.I – S.I
Therefore,
P[(1 + r/100)^n – 1] – Pnr/100 = 110.16
Simplifying the equation, we get
P[(1 + 6/100)^3 – 1 – 6/100] = 110.16
P[(1.06)^3 – 1 – 0.06] = 110.16
P[(1.191016) – 1 – 0.06] = 110.16
P[(0.131016)] = 110.16
P = 110.16/0.131016
P = Rs. 8432
Hence, the principal is Rs. 8432.
Verification:
C.I = P[(1 + r/100)^n – 1]
C.I = 8432[(1 + 6/100)^3 – 1]
C.I = 8432[(1.06)^3 – 1]
C.I = Rs. 1105.16
S.I = Pnr/100
S.I = 8432 × 6 × 3/100
S.I = Rs. 1517.76
Difference between C.I and S.I = C.I – S.I
Difference between C.I and S.I = 1105.16 – 1517.76
Difference between C.I and S.I = Rs. 110.16
Therefore, the calculated principal of Rs. 8432 satisfies the given conditions.
Hence, the correct option is D) Rs. 10000.
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Community Answer
The difference between C.I and S.I on a certain sum of money invested ...
3 into 6 divide by 100=0.18compound interest is 6 divide by 100= 0.060.06+1 into= 3 time = 1.191016-1= 0.191016- 0.18= 0.011016110.16 divide by 0.011016= 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 isa)Rs. 3000b)Rs. 3700c)Rs. 12000d)Rs. 10000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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 isa)Rs. 3000b)Rs. 3700c)Rs. 12000d)Rs. 10000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 isa)Rs. 3000b)Rs. 3700c)Rs. 12000d)Rs. 10000Correct answer is option 'D'. Can you explain this answer?.
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 isa)Rs. 3000b)Rs. 3700c)Rs. 12000d)Rs. 10000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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 isa)Rs. 3000b)Rs. 3700c)Rs. 12000d)Rs. 10000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 isa)Rs. 3000b)Rs. 3700c)Rs. 12000d)Rs. 10000Correct answer is option 'D'. Can you explain this answer?.
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