The difference between the compound interest and simple interest accrued on an amount at the end of ...

The difference between the compound interest and simple interest accrued on an amount at the end of three years at the rate of 12% is Rs.381.888. What is the amount?

Quiz

Answer/Solution

Rs.8500

Steps/Work

Explanation:
C.I = P[(1+R/100)T - 1]
= P[(1+12/100)3 - 1] = P[(28/25)3 - 1]
= P[(21952/15625) - 1]
= 6327P/15625
S.I = (P x 3 x 12)/100 = Rs. 9P/25
6327P/15625 - 9P/25 = 381.888
=> 702P/15625 = 381.888
=> P = (381.888 x 15625)/702
= Rs. 8500
Answer: Option C