The difference between the simple interest and the compound interest on a sum of money at 5% p.a. for 3 years is ₹122. Find the sum.₹12,000₹8,000₹16,000₹20,000
Question
The difference between the simple interest and the compound interest on a sum of money at 5% p.a. for 3 years is ₹122. Find the sum.₹12,000₹8,000₹16,000₹20,000
Solution
The difference between compound interest and simple interest for 3 years is given by the formula:
P*(R/100)^2
Where P is the principal amount and R is the rate of interest.
Given in the problem, the difference is ₹122 and the rate of interest is 5%.
So, substituting the values in the formula, we get:
P*(5/100)^2 = 122
Solving this equation, we get:
P = 122 / (0.05)^2
P = ₹48,800
So, the sum of money is ₹48,800. However, this option is not available in the given choices. There might be a mistake in the problem or the options provided.
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