Paper 1 · Mathematical Reasoning and Aptitude
UGC NET 05th Jan 2026 Shift 1
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
Answer: D
Explanation
★For two years the gap between compound and simple interest equals the principal times the rate by hundred whole squared. So 72 equals the principal times 0.12 times 0.12, that is the principal times 0.0144. Dividing 72 by 0.0144 gives 5000. So the principal is 5000 rupees.
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