The difference between compound interest and simple interest is Rs. 3375 in 2…
2025
The difference between compound interest and simple interest is Rs. 3375 in 2 years and the rate of interest is 15%. Find the principal amount:
- A.
Rs. 100,000
- B.
Rs. 150,000
- C.
Rs. 160,000
- D.
Rs. 45,000
Attempted by 4 students.
Show answer & explanation
Correct answer: B
Given: Rate = 15%, Time = 2 years, Difference between compound and simple interest = Rs. 3,375.
Key formula for 2 years: For 2 years, the difference between compound interest and simple interest equals P × (R/100)^2.
Substitute R = 15%: (15/100)^2 = 0.0225, so P × 0.0225 = 3,375.
Solve for P: P = 3,375 / 0.0225 = 150,000.
Answer: The required principal is Rs. 150,000.