If the difference between Simple Interest and Compound Interest on a certain amount of money deposited at the rate 12% per annum for two years is ₹72, then find the amount of money deposited (i.e principal amount).
A₹5700
B₹5500
C₹5200
D₹5000 ✓ Correct
Correct answer: (D) ₹5000
Explanation
The principal is Rs. 5000.
For 2 years the SI-CI difference = P x (r/100)^2.
Here 72 = P x (12/100)^2.
So 72 = P x 0.0144.
Hence P = 72 / 0.0144 = 5000.
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