A man deposited an amount in the bank at 12% annum simple interest for 3 years, if he had deposited the amount for the same time and rate in compound interest he could have received Rs.1123.2 more. Calculate the amount deposited by the man.
1. Rs.25000
2. Rs.28000
3. Rs.45000
4. Rs.15000
5. Rs.22000
1. Rs.25000
2. Rs.28000
3. Rs.45000
4. Rs.15000
5. Rs.22000
Correct Answer – Option 1 : Rs.25000
Interest received on simple interest at12% for 3 years
SI = (P × R × T)/100
P → Principle amount
R → Rate
T → Time
⇒ SI = (P × 12 × 3)/100 = 36P/100 = 0.36P
Interest received on compound interest at 12% for 3 years
CI = P{1 + (R/100)}t – P
⇒ CI = P(1 + 12/100)3 – P = P{(1.12)3 – 1} = 0.404928P
According to question,
⇒ 0.404928P – 0.36P = 1123.2
⇒ 0.044928P = 1123.2
⇒ P = 25000
∴ The amount deposited by the man.is Rs.25000