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 ?
Answer: Option B
Was this answer helpful ?
Let the sum be Rs, P, Then
`P[(1 + 5/100)^4 - 1] - (P xx 10 xx 2)/(100)` = 124.05
`rArr P[(21/20)^4 - 1 - 1/5] = 124.05`
`rArr P[194481/160000 - 6/5] = 12405/100`
`rArr P[(194481 - 192000)/(160000)] = 12405/100`
`rArr P = (12405/100 xx 160000/2481)` = 8000.
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution