The difference between C.I. and S.I. on a certain sum of money at 10% per annum for 3 years is Rs. 620. Find the principal if it is known that the interest is compounded annually

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Solution

Difference between CI and SI =
$\frac{P r^{2}}{100^{3}} (300 + r)$
$\Rightarrow 620 = \frac{P \times 100}{100^{3}} \times (300 + 10) = \frac{100 P}{100^{3}} (310)$
$\Rightarrow 620 = \frac{P (310)}{10000} \Rightarrow P = R s . 20, 000$

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The difference between C.I. and S.I. on a certain sum of money at 10% per annum for 3 years is Rs. 620. Find the principal if it is known that the interest is compounded annually

Difference between CI and SI = Pr21003(300+r)⇒620=P×1001003×(300+10)=100P1003(310)⇒620=P(310)10000⇒P=Rs.20,000

Difference between CI and SI =
$\frac{P r^{2}}{100^{3}} (300 + r)$
$\Rightarrow 620 = \frac{P \times 100}{100^{3}} \times (300 + 10) = \frac{100 P}{100^{3}} (310)$
$\Rightarrow 620 = \frac{P (310)}{10000} \Rightarrow P = R s . 20, 000$