Question

The difference between the simple interest on a certain sum at the rate of 10% per annum for 2 years and compound interest which is compounded every 6 months is Rs.124.05.What is the principal sum?

• A. Rs.6000
• B. Rs.7000
• C. Rs.8000
• D. Rs.9000
• E. Rs.12000

Answer 1

The correct option is C

Rs.8000

Let the sum be Rs.P. Then

$P({(1+\frac{5}{100})}^4-1)-\frac{P\times 10\times 2}{100}=124.05$

P = Rs.8000