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The difference between the Simple Interest on some principal at 8% for 8 months and 6% for 14 months is Rs.200. What is the principal?
Question

The difference between the Simple Interest on some principal at 8% for 8 months and 6% for 14 months is Rs.200. What is the principal?

A.

Rs.12000

B.

Rs.24000

C.

Rs.14400

D.

Rs.12800

Correct option is A

Given:
Interest rates: 8% for 8 months and 6% for 14 months.
Difference in simple interest = Rs. 200.
Formula Used:
The formula for simple interest (SI) is:
SI=P×R×T100\text{SI} = \frac{P \times R \times T}{100}​​
where:
P is the principal,
R is the rate of interest per annum,
T is the time in years.
Solution:
The difference between the two simple interests is:

SI1SI2=200\text{SI}_1 - \text{SI}_2 = 200​​

P×6×1412100P×8×812100=200\frac{P \times 6 \times \frac{14}{12}}{100}-\frac{P \times 8 \times \frac{8}{12}}{100} = 200​​

P×841200P×641200=200\frac{P \times 84}{1200} - \frac{P \times 64}{1200} = 200​​

P(8464)1200=200\frac{P(84 - 64)}{1200} = 200​​

P×(20)1200=200\frac{P \times (20)}{1200} = 200​​

P×(160)=200P \times (\frac{1}{60}) = 200​​

P=200×(60)=12000P = 200 \times (60) = 12000​​

Thus, the principal is Rs.12,000.

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