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If the difference between the simple and the compound interests on some principal amount at 20% for 3 years is Rs 48, then the principal amount must be
Difference between SI and CI for 3 years = $$\frac{Pr^2}{100^2}(3+\frac{r}{100})$$ and for 2 years = $$\frac{Pr^2}{100^2}$$
Now, rate of interest = $$r=20\%$$ and time = $$t=3$$ years
Let principal amount be Rs. $$P$$
=> Difference = $$P\times\frac{(20)^2}{(100)^2}(3+\frac{20}{100})=48$$
=> $$P\times\frac{1}{25}\times\frac{16}{5}=48$$
=> $$P=\frac{48\times125}{16}=3\times125$$
=> $$P=Rs.$$ $$375$$
=> Ans - (C)
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