Question
It is given that the compound interest on a certain sum of money for 3 years at 5% is Rs 122, what would be the SI for the same sum of money at the same rate of interest?
Answer: Option A
:
A
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A
Assume the principal amount to be Rs 8000 (you can assume anything)
CI for Rs 8000 for 3 years at 5% per annum
Rate = 5%
For a period of 3 years, consider the 3rd line of the Pascal’s triangle
1331
Amount is = 8000(1) + ( 5% of 8000=400)(3) + ( 5% of 400=20)(3) + ( 5% of 20 =1)(1)
Sum= 8000 + 1200 + 60 + 1 =9261 .
CI = 9261-8000= 1261
The CI is Rs 1261 when the principal is Rs 8000.
Finding the Principal when CI=Rs.122=122×80001261=Rs.774
SI =774×5×3100 = Rs 116. Note:- you can assume even 100 to make it much simpler
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