When difference between compound and simple interest for three years is ₹228 at 4% interest per annum, the principal is ₹______

Correct option is A

Given:

Difference between compound interest and simple interest for 3 years = ₹228

Rate of interest per annum = 4%

Time period = 3 years

Formula Used:

Difference between CI and SI for 3 years = $$P × (\frac{R}{100})^2 × \frac{(300 + R)}{100}$$​​

Solution:

​$$₹228 = P × (\frac{4}{100})^2 × (\frac{304}{100}) \\\ \\$$ 

​$$228 = P \times \frac{16}{10000} \times \frac{304}{100}$$ 

P = $$\frac{228000000}{4864}$$ 

P = 46875