The difference between compound interest of two years and compound interest of first year is Rs. 44. The rate of interest for first and second year is 14.28% and 11.11% respectively. Then find the principal.
Answer & explanation
Correct answer: option 1
14.28 % = \(\frac{1}{7}\), 11.11% = \(\frac{1}{9}\)
Let the Principal = 63 (LCM of 7 & 9)
According to diagram:
C.I. of first year = 9
C.I. of two years = 17
Hence,
Difference b/w C.I. of two years and C.I. of first year = 17 - 9 = 8
ATQ,
8R = 44
1R = 5.5
Principal = 63R = 63 × 5.5 = 346.50