Mathematics for FinancePYQ Nov 19Question 1204 of 512
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The difference between CI and SI for 2\displaystyle 2 years, is Rs. 21\displaystyle \text{Rs. }21. If rate of interest is 5%\displaystyle 5\% find principal

Options

ARs. 8,400\displaystyle \text{Rs. }8,400
BRs. 4,800\displaystyle \text{Rs. }4,800
CRs. 8,000\displaystyle \text{Rs. }8,000
DRs. 8,200\displaystyle \text{Rs. }8,200
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Correct Answer

✅ Option a — Rs. 8,400\displaystyle \text{Rs. }8,400

All Options:

  • ARs. 8,400\displaystyle \text{Rs. }8,400
  • BRs. 4,800\displaystyle \text{Rs. }4,800
  • CRs. 8,000\displaystyle \text{Rs. }8,000
  • DRs. 8,200\displaystyle \text{Rs. }8,200

Detailed Solution & Explanation

**Derivation of Principal Amount** Given: - Difference between Compound Interest (CI\displaystyle CI) and Simple Interest (SI\displaystyle SI) for 2\displaystyle 2 years = Rs. 21\displaystyle \text{Rs. }21 - Rate of Interest (r\displaystyle r) = 5%\displaystyle 5\% per annum **Step 1: Set up the formula for difference between CI and SI for 2 years** Difference=P(r100)2\text{Difference} = P \left(\frac{r}{100}\right)^2 **Step 2: Solve for P\displaystyle P** 21=P(5100)221 = P \left(\frac{5}{100}\right)^2 21=P(0.05)221 = P \left(0.05\right)^2 21=0.0025P21 = 0.0025 P P=210.0025=Rs. 8,400P = \frac{21}{0.0025} = \text{Rs. }8,400 Hence, **Option A** is the correct answer.

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