The difference between the compound interest and the simple interest on a sum for 3 years at 20% per annum is Rs. 1,152. What is the simple interest on the sum for 3 years?
Correct answer D. Rs. 5,400
Explanation
CI − SI = P(0.2)²(3 + 0.2) = 0.128P = 1152, so P = 9,000. SI = 9000 × 20 × 3 / 100 = Rs. 5,400.
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