Question

The difference between SI and CI  on a certain amount at 8% rate of interest per annum for 3 years is Rs. 77. Find the amount?
1. Rs. 3906.25
2. Rs. 4000
3. Rs. 3800
4. Rs. 4100
5. None of these 

Answer 1

Correct Answer - Option 1 : Rs. 3906.25

Given that:

Difference between SI and CI = Rs. 77

Rate of interest = 8 % ,

Time = 3 years

Formula:

difference between SI and CI for 3 years = (CI – SI) = P × (R / 100)² × [( 300 + R) /100]

Calculation:

Difference between SI and CI for 3 years = Rs77

⇒ 77 = P × (8 / 100)² × (300 + 8) /100

⇒ 77 = P × 64 × 308/1000000

⇒ P = 77000000/(64 × 308) = Rs. 3906.25

∴ Amount is Rs. 3906.25