If the difference between the compound interest and simple interest on a sum at 5% rate of interest per annum for three years is 36.60, then the sum is
Options:
A . 4800
B . 8000
C . 4400
D . 8400
Answer: Option A Answer: (a)Simple ApproachDifference of SI and CI for 3 years= ${PR(300 + R)}/{100^3}$Since, ${P × 25 × 305}/{100 × 100 × 100}$ = 36.60P = ${36.60 × 100 × 100 × 100}/{25 × 305}$ = Rs.4800Using Rule 6,C.I.–S.I. = Rs.36.60, R = 5%, P =?, T = 3yrs.C.I. - S.I.= P$(R/100)^2 × (3 + R/100)$36.60 = P$(5/100)^2 × (3 + 5/100)$36.60 = P × $25/{100^2} × 305/100$P = ${36.60 × 100 × 100 × 100}/{25 × 305}$P = $36600000/{25 × 305}$ = Rs.4800
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