The difference between simple interest and compound interest of a certain sum of money at 10% per annum for 1 year is ₹180. Then the sum is: (Interest being compound half yearly)
Answer & explanation
Correct answer: option 3
Simple interest ⇒ 10%
Compounded interest ⇒ 5 + 5 + \(\frac{5 × 5}{100}\) ⇒ 10.25
Diff. b/w C.I & S.I. for two years ⇒ 10.25 - 10% ⇒ 0.25%
ATQ,
0.25 % P = 180
1% P = \(\frac{180}{.25}\)
100 % P = \(\frac{180}{25}\) × 10000
Principal = Rs.72000