If the difference between simple and compound interest on

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If the difference between simple and compound interest on some principal amount at 20% per annum for three years is ₹ 48, then the principal amount is:

1. ₹ 450
2. ₹ 375
3. ₹ 390
4. None of these

Correct Option: B

Given that , Difference ( D ) = ₹ 48 , r = 20%
Using the given formula ,

For three years , P =	D × 100³
	r²(r + 300)

P =	48 × 100³	= Rs. 375
	400(20 + 300)