Simple interest and compound interest (Compounded annually ) on a principal at a certain rate of interest for 2 years is Rs. 1600 and Rs. 1760 respectively. What is the principal ?
Answer & explanation
Correct answer: option 4
Simple Interest (S.I.) For two years = Rs 1600
So, S.I. For one year = Rs 800
Compound interest for 2 years = Rs 1760
Hence, Difference b/w CI & SI = Rs.1760 - Rs.1600 = Rs.160
Now,
