Question

The difference between compound interest and simple interest for 3 years on a certain sum at 6% p.a is Rs. 88.128. Find sum.
1. Rs. 8,000
2. Rs. 12,000
3. Rs. 15,000
4. Rs. 10,000

Answer 1

Correct Answer - Option 1 : Rs. 8,000

Given,

Difference between C.I and S.I after 3 years = Rs. 88.128

Rate % = 6% p.a

Formula used,

CI – SI, for 3 years = (3R²/100 + R³/100²) % of P

Let, sum be Rs. X

C.I – S.I = (3R²/100 + R³/100²) % of P

⇒ (3 × 6² /100 + 6³/100²) % of P = (1.08 + 0.0216) /100 × P = 88.128

⇒ 1.1016 × P = 8812.8

P = 8812.8/1.1016 = 8000

Therefore, sum = Rs. 8,000