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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?


Options:
A .   116
B .   320
C .   220
D .   290
Answer: Option A
:
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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