Maths · Arithmetic and Geometric progressions

The difference between the C.I. and S.I. on a sum of money deposited for 4 years

The difference between the C.I. and S.I. on a sum of money deposited for 4 years at \( 5 \% \) per annum was Rs. \( 15 . \) Find the sum of the money.

  • A. 667 .74
  • B. 767.74
  • C. 867.74
  • D. 967.74

Step-by-step solution

Let the principal be P. SI = (P * 5 * 4)/100 = 0.2P. CI = P[(1 + 5/100)^4 - 1] = P(1.05^4 - 1) = P(1.21550625 - 1) = 0.21550625P. Difference CI - SI = 0.01550625P = 15, so P = 15 / 0.01550625 ≈ 967.74.
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