Multiple choice

The difference between the compound and simple interest on a certain sum for the first 3 years at the rate of 10% per annum is Rs.124. What is the sum?

  1. Rs.2000

  2. Rs.3000

  3. Rs.4000

  4. Rs.5000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The difference between CI and SI for 3 years is given by P * (r/100)^2 * (3 + r/100). Here, 124 = P * (0.1)^2 * (3.1) = P * 0.01 * 3.1 = P * 0.031. P = 124 / 0.031 = 4000.

AI explanation

For 3 years, the difference between compound interest and simple interest is calculated as (P times R squared times 3) plus (P times R cubed), all divided by 1000000, or alternatively (P times R squared times (300 plus R)) divided by 10000000. Substituting the given values gives (P times 100 times 310) divided by 10000000 equals 124. Solving this equation gives P equals 1240000000 divided by 31000, which equals Rs. 4000.

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