Multiple choice

The difference between simple and compound interest on a sum for $3$ years at $5\%$ p.a. is Rs. $76.30$. Find the sum.

  1. $8,000$
  2. $10,000$
  3. $12,000$
  4. $15,000$
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B Correct answer
AI explanation

Using the formula for the difference between compound interest and simple interest for 3 years, Difference = P(R/100)^2(3 + R/100). Substituting the given values gives 76.30 = P(5/100)^2(3 + 5/100). This simplifies to 76.30 = P(1/400)(3.05), which further reduces to 76.30 = P(3.05/400). Solving for the principal yields P = 7630 / 3.05 = 10000. The sum is Rs. 10,000.

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