Multiple choice

The difference between simple interest and compound interest on a certain sum of money for 3 years at 10% p.a. is Rs. 46.50. Find the sum.

  1. Rs. 1000

  2. Rs. 1500

  3. Rs. 1550

  4. Rs. 1200
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B Correct answer
Explanation

For 3 years, the difference between CI and SI is P * (r/100)^2 * (3 + r/100). 46.50 = P * (0.1)^2 * (3.1) = P * 0.01 * 3.1 = P * 0.031. P = 46.50 / 0.031 = 1500.

AI explanation

Using the formula for the difference between compound interest and simple interest for 3 years, the difference equals P times R squared times (3 plus R) divided by 100 cubed. Substituting the given values, 46.50 equals P times 10 squared times (3 plus 10) divided by 100 cubed, which simplifies to 46.50 equals P times 100 times 13 divided by 1000000. Solving for P gives 46500000 divided by 1300, so the principal is Rs. 1500.

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