On a certain sum, the difference between the compound interest, compounded annually, and the simple interest at 10% per annum for 3 years is ₹93. The sum is:
Answer & explanation
Correct answer: option 2
The formula used here is,
Difference in the simple interest and compound interest on a certain sum at R% per annum in 2 years = (CI - SI) = $\frac{PR^2(300+R)}{100^3}$
⇒ Difference in the simple interest and compound interest on a certain sum at 10% per annum in 2 years = Rs. 93
⇒ 93 = \(\frac{ P × R²× ( 300 + R)}{100³}\)
⇒ 93 = \(\frac{ P × 10²× ( 300 + 10)}{100³}\)
⇒ \(\frac{ 93 × 100² }{ 310}\) = P
⇒ P = 9000