Correct Answer - Option 4 : Rs. 31874
Given:
The simple interest on an amount invested at 9% per annum for 6 years = double than the compound interest on Rs. 26000 for 3 years at 10% per annum.
Formula used:
CI = P [1 + (r/100)]n – P, when the rate of interest is r and the amount is invested for n years.
SI = (Principal × rate × time)/100
Calculation:
S.I = (P × 6 × 9)/100 = 27P/50
CI = 26000(1 + 10/100)3 – 26000
⇒ Rs. (34606 – 26000) = 8606
Now, according to the question,
27P/50 = 2(8606)
P = Rs. 31,874
∴ The amount invested under simple interest is Rs. 31,874