The difference between compound interest and simple interest on a principal at…
2023
The difference between compound interest and simple interest on a principal at 10% per annum for two years is ₹ 5431. Find the principal.
- A.
₹ 54310
- B.
₹ 108620
- C.
₹ 453100
- D.
₹ 543100
Attempted by 5 students.
Show answer & explanation
Correct answer: D
To find the principal, we use the formula for the difference between compound interest and simple interest over two years: Difference = P × (r/100)². Given the difference is ₹5431 and the rate (r) is 10%, we substitute these values: 5431 = P × (10/100)². Simplifying the rate: 5431 = P × (1/10)², which becomes 5431 = P × 1/100. Solving for P: P = 5431 × 100 = ₹543,100.