Correct option is A
Given:
Simple Interest (SI) for 2 years = Rs. 42
Compound Interest (CI) for 2 years = Rs. 45
Same rate of interest, same principal
Concept Used:
Simple Interest (SI) is uniform each year.
Compound Interest (CI) adds interest on interest.
Difference between CI and SI in 2 years gives extra interest = interest on 1st year’s interest.
Formula Used:
SI =
CI - SI =
Solution:
SI for 2 years = 42
SI for 1 year = 21
CI for 2 years = 45
CI for 1st year = 21, CI for 2nd year = 24
Extra interest = 24 - 21 = 3 = interest on Rs. 21
R =
From SI formula (1 year):
21 =
21 =
P = 147
Alternate Solution(Exam-hall Method):
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