Multiple choice

Deepika deposited a certain amount of money in a scheme with an annual interest rate of 4%. Three years later, she noticed that the compound interest she earned was Rs. 760 more than the simple interest. How much did Deepika initially invest?

  1. Rs. 1,25,650

  2. Rs. 1,56,250

  3. Rs. 1,65,650

  4. Rs. 2,12,650
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 3 years, CI - SI = P * (r/100)^2 * (3 + r/100) = 760. P * (0.04)^2 * (3.04) = 760. P * 0.0016 * 3.04 = 760. P * 0.004864 = 760. P = 760 / 0.004864 = 156250.

AI explanation

The formula for the difference between compound interest and simple interest for three years is principal multiplied by the rate squared multiplied by the rate plus 300, all divided by 1000000. Setting this equal to 760 gives the equation principal multiplied by 16 multiplied by 304 divided by 1000000 equals 760. Solving for the principal gives 760 multiplied by 1000000 divided by 4864, which results in Rs. 156250.

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