2021 · Q63
The difference between the compound interest (compounded annually) and the simple interest on a certain sum of money at 12% per annum for 2 years is Rs.72. What is the principal amount?
Elementary MathematicsSimple and Compound Interest
- ARs.6,500
- BRs.6,000
- CRs.5,500
- DRs.5,000
Explanation
For 2 years, CI − SI = P·(r/100)². So P·(0.12)² = 72, giving P = 72/0.0144 = Rs. 5,000. Hence option D.