Question Details

The difference between the compound interest and simple interest accrued on a principal amount over 2 years at a rate of 15% per annum is Rs. 135. Find the principal sum.

Options

A

Rs. 7,200

B

Rs. 4,500

C

Rs. 6,000

D

Rs. 5,400

Show Answer

Correct Answer :

Option C

Rs. 6,000

Rs. 5,000

Solution :

The correct answer is Rs. 6,000.

Given Data:
Difference between Compound Interest (CI) and Simple Interest (SI) for 2 years = Rs. 135
Rate of interest (r) = 15% per annum
Time period (t) = 2 years

Formula:
The difference between Compound Interest and Simple Interest accrued on a principal amount over 2 years is given by:

Difference=P×r1002

where P represents the principal sum and r is the annual rate of interest.

Step-by-step Solution:

Substitute the given values into the formula:

135=P×151002

Simplify the fraction 15100 to 320:

135=P×3202

Square the fraction 320:

135=P×9400

Rearrange the terms to solve for P:

P=135×4009

Divide 135 by 9:

P=15×400

P=6000

Thus, the principal sum is Rs. 6,000.

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