Multiple choice

On a certain principal if the simple interest for two years is Rs.6000 and compound interest for the two years is Rs.6900. find the principal?

  1. Rs.10000

  2. Rs.1000

  3. Rs.50000

  4. Rs.15000

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For 2 years, SI = Rs.6000 means annual interest = Rs.3000. CI - SI = Rs.900 is the interest on first year's interest. Let P be principal and r be rate. Then Pr = 3000 and Pr² = 900, so r = 30% and P = 3000/0.3 = Rs.10000. Option A is correct.

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