The difference between the compound interest compounded annually and simple interest for 2 years at 20% per annum is Rs.144. Find the principal?
Q1. The difference between the compound interest compounded annually and simple interest for 2 years at 20% per annum is Rs.144. Find the principal?
Answer: Rs0.36
Explanation: The difference between compound and simple interest for 2 years = P(r/100)²; with r=20%: P×0.04 = 144, so P = Rs. 3600.