CLAT Sample Paper CLAT Sample Paper-7

  • question_answer
    The difference between the simple interest (SI) and compound interest (CI) for 2 yr at 4% per annum is Rs 20. The principal will be

    A)  Rs 11000         

    B)  Rs 11500

    C)  Rs 12500         

    D)  Rs 12800

    Correct Answer: C

    Solution :

    Let principal = Rs 3 Then, simple interest \[=\frac{x\times 4\times 2}{100}=\frac{2x}{25}\] and compound interest \[=\left[ x\times {{\left( 1+\frac{4}{100} \right)}^{2}}-x \right]=\frac{51x}{625}\] \[\therefore \] \[\frac{51x}{625}-\frac{2x}{25}=20\] \[\therefore \] \[\frac{51x-50x}{625}=20\] \[\Rightarrow \] \[\frac{x}{625}=20\] \[\therefore \] \[x=20\times 625=\text{Rs}\,\,12500\]

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