Question

The difference between compound interest and simple interest for $3$ years @ $20\%p.a.$ is $152$. What is the principal lent?

• A. $Rs.1200$
• B. $Rs.1155$
• C. $Rs.1187.50$
• D. None of these

Answer 1

Answer: (C)

$Rs.1187.50$

We have,

Difference between C.I and S.I for $3years$ $=152$

$R=20\%$

$P=?$

We know that the difference between C.I and S.I for $3years$

$=P{\left(\frac{R}{100}\right)}^2(\frac{R}{100}+3)$

Therefore,

$P{\left(\frac{20}{100}\right)}^2(\frac{20}{100}+3)=152$

$P{\left(\frac{1}{5}\right)}^2(\frac{1}{5}+3)=152$

$P{\left(\frac{1}{5}\right)}^2\left(\frac{16}{5}\right)=152$

$P\left(\frac{16}{125}\right)=152$

$P=Rs.1187.50$

Hence, this is the answer.