Question

Determine the principal if the difference between the compound and simple interest on a certain sum at $13\%$ per annum for $3$ years is Rs. $600$.

• A. $11363$
• B. $12363$
• C. $13363$
• D. $14363$

Answer 1

Answer: (A)

$11363$

Compound interest $=A-P$
$\text{CI}=P{(1+\frac{R}{100})}^n-P=P[1+\frac{13}{100}{]}^3-1]$
$\text{CI}=0.4428$
Simple interest, SI $=$ $\frac{PNR}{100}$
$\text{SI}=\frac{P\times 13\times 3}{100}$
SI $=0.39P$
Now CI $-$ SI $=600$
$\Rightarrow 0.4428P-0.39P=600$
$\Rightarrow P=\frac{600}{0.0528}$
$\Rightarrow P=$ Rs. $11363$