Question

On certain principal the simple interest and compound interest for 2 years at the same
rate of interest are Rs. 400 and Rs. 420 respectively. Find the principal.
1) Rs. 4000 2) Rs. 3500
3) Rs. 2000
4) Rs. 1000​

Answer 1

Answer:

2,000 Rs

Step-by-step explanation:

CI = 420 Rs

SI = 400 Rs

SI for one year = 400/2 = 200 Rs

CI - SI = 420 - 400 = 20 Rs

So,

% = 20/200 × 100 = 10 %

10% of Principal = 200 Rs

Therefore,

Principal = 2,000 Rs