Multiple choice

If the difference between compound interest and simple interest for a certain amount of money invested for 3 years at an annual interest rate of 10% is INR 527, then the amount invested in INR is

  1. 15,000

  2. 1,70,000

  3. 17,000

  4. 1,50,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For 3 years at rate r, the difference between CI and SI is P * (r/100)^2 * (3 + r/100). Here, 527 = P * (0.1)^2 * (3 + 0.1) = P * 0.01 * 3.1 = P * 0.031. P = 527 / 0.031 = 17000.

AI explanation

The difference between compound interest and simple interest for three years is given by the formula P * (R/100)^2 * (3 + R/100). Substituting the given values of R = 10 and difference = 527, we get P * (0.10)^2 * (3.10) = 527. This simplifies to P * 0.031 = 527, which yields P = 17000.

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