Mathematics for FinanceMTP Sep 24 Series IIQuestion 1431 of 512
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On what sum will the difference between the S.I. and C.I. for 3\displaystyle 3 years at 6%\displaystyle 6\% p.a. amount to 13.77\displaystyle 13.77?

Options

A1250\displaystyle 1250
B1150\displaystyle 1150
C1320\displaystyle 1320
DNone of these
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Correct Answer

✅ Option a — 1250\displaystyle 1250

All Options:

  • A1250\displaystyle 1250
  • B1150\displaystyle 1150
  • C1320\displaystyle 1320
  • DNone of these

Detailed Solution & Explanation

Let the sum of money (principal) be P\displaystyle P. The rate of interest is r=6%\displaystyle r = 6\% p.a., so i=6100=0.06\displaystyle i = \frac{6}{100} = 0.06. The time period is t=3\displaystyle t = 3 years. The formula for the difference between Compound Interest (CI\displaystyle CI) and Simple Interest (SI\displaystyle SI) for a 3\displaystyle 3-year period is: CI−SI=P×i2×(3+i)CI - SI = P \times i^2 \times (3 + i) Given that the difference is Rs. 13.77\displaystyle \text{Rs. }13.77: 13.77=P×(0.06)2×(3+0.06)13.77 = P \times (0.06)^2 \times (3 + 0.06) 13.77=P×0.0036×3.0613.77 = P \times 0.0036 \times 3.06 13.77=0.011016P13.77 = 0.011016 P Solving for P\displaystyle P: P=13.770.011016=1,250P = \frac{13.77}{0.011016} = 1,250 Thus, the sum of money is Rs. 1,250\displaystyle \text{Rs. }1,250. Hence, **Option A** is the correct answer.

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