If compound interest on a certain sum for 3 years at rate of 12.5% p.a. is Rs. 151.90. Then find double of principal.
Answer & explanation
Correct answer: option 3
12.5% = \(\frac{1}{8}\)
For 3 years
Principal : Amount
I 8 : 9
II 8 : 9
III 8 : 9
for 3 yrs.⇒ 512 : 729
C.Int. = 729 - 512 = 217
217R = 151.90 (given)
1R = 0.7
Principal ⇒ 512R = 512 × 0.7 = 358.4
Double of principal = 358.4 × 2 = 716.8