Question

The difference between

c.i and s.i on a certain sum of money invested for 3 years at 6% p.a is rs. 110.16. the sum is

Answer 1

Hope it helps. Thanks!! Answer is Rs. 10000.

Answer 2

Given :

The difference of CI and SI is Rs. 110.16

Time (n) = 3 years

Rate (r) = 6%

To Find :

The principle amount (P)

Solution :

Difference of CI and SI = P($(1 + \frac{R}{100}) ^{n}$ - 1) - $\frac{PRT}{100}$

By expanding the equation and putting n = 3, we get,

The difference of CI and SI for 3 years = $\frac{Pr^{2} }{100^{3} } (300 + r)$

or,                      110.16                               = $\frac{P (6)^{2} }{100^{3} } (300 + 6)$

or,                      110.16 × 1000000           = 36P (306)

or,                          Principle (P)                = 0.01 × 1000000

∴                            Principle (P)                = Rs. 10000  

∴ The sum of money for which the difference between CI and SI is Rs. 110.6 for 3 years at 6% per annum is Rs 10000.