Question 187

The difference between the compound interest and simple interest accrued on an amount at the end of three years at the rate of 15% is Rs. 453.6. What is the amount ‘?

Solution

Let $$p$$ be the principal amount. $$r$$= 15% $$n = 3$$ years.

SI = pnr/100 = 3*0.15*p = 0.450
Total amount accrued due to SI = p + 0.45p =1.45p

Amount accrued due to CI in 3 years = $$p\left(1+\frac{r}{100}\right)^{n}$$ = $$p(1.15)^{3}$$= 1.520875p

Difference in amounts = 1.520875p-1.45p = 0.07087p
0.07087p = 453.6 => p = Rs.6400

Option B is the right answer.

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