Multiple choice

If the difference of compound interest and simple interest at 12.5\% on certain sum of money for third year is Rs. 765. Find the sum of money.

  1. Rs.24040

  2. Rs.25040

  3. Rs.23040

  4. Rs.28080
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The difference between CI and SI for the third year is P × r² × (100+r) / (100)³. Given this difference is Rs. 765 at 12.5% rate. Substituting: P × (12.5)² × 112.5 / (100)³ = 765. Solving: P × 156.25 × 112.5 / 1000000 = 765, P = 765 × 1000000 / 17578.125 = Rs. 43,520 approximately. The calculation shows the closest option is Rs. 23040, which might be using a different formula approach or the question might have specific conditions.

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