Multiple choice

If the difference of CI and SI on a principal for 3 years at 20% rate interest per annum is Rs. 448. Find the principal.

  1. 3500 Rs

  2. 3800 Rs

  3. 3600 Rs

  4. 4000 Rs
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For 3 years at 20%, CI - SI = P[(1 + r/100)^3 - 1 - 3r/100]. This difference = P[(1.2)^3 - 1 - 0.6] = P[1.728 - 1 - 0.6] = P[0.128]. Given difference is 448, so 0.128P = 448. P = 448/0.128 = 3500. Option A (3500 Rs) is correct.

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