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The difference between the compound interest and simple interest on a principal amount for 2 years a 10% per annum is Rs.5431. find the principal amou
Question

The difference between the compound interest and simple interest on a principal amount for 2 years a 10% per annum is Rs.5431. find the principal amount.

A.

Rs.54310

B.

Rs.108620

C.

Rs.453100

D.

Rs.543100

Correct option is D

Let the principle amount be P.
 for the simple interest of 2 years,
S.I. = (P × R × T)/100
(P × 10 × 2)/100 = 0.2P
Now, the compound interest of 2 years,
 C.I. = A - P
 P(1 + r)t - P
 P((1 + 0.1)2 - 1)
P((1.1)2 - 12)
P(1.1 + 1)(1.1 - 1)
P(2.1)(0.1)=  0.21P
Now it is given that the difference is Rs. 5431
0.21P - 0.2P = 5431
0.01P = 5431
 P = 543100

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