Question

The difference between simple interest and compound interest on a certain sum of money at 12% per annum for 3 years is 702 find the principal

Answer 1

CI-SI=702

Applying formula

{P(1+12/100)^3} - {(P×12×3)/100} =702

Taking p common,

$p(( \frac{112 \times 112 \times 112}{100 \times 100 \times 100} ) - (\frac{36}{100} )) = 702$

p{(1.404928)-(0.36)}=702

p×1.044928=702

p=702/1.044928

p=₹671.82