Paper 1 · Mathematical Reasoning and Aptitude
UGC NET December 2023 (12.12.2023) Shift-I
The difference between the compound interest and simple interest on a principal amount for 2 years at 10% per annum is Rs 5431. Find the principal amount.
ARs 54310
BRs 108620
CRs 453100
DRs 543100 ✓ Correct
Correct answer: (D) Rs 543100 — The principal amount is Rs 543100, so that is the answer.
Explanation
★The principal amount is Rs 543100, so that is the answer.
★For 2 years the difference between compound and simple interest is the principal times the rate over 100, squared.
★Here the rate is 10 percent, so the factor is 10 over 100, squared.
★That factor is 1 over 100, so the difference equals the principal divided by 100.
★So 5431 equals the principal divided by 100.
★Multiplying by 100 gives the principal as Rs 543100.
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