The difference between compound and simple interest on a

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The difference between compound and simple interest on a certain sum for 3 years at 5% per annum is ₹ 122. The sum is

1. ₹ 16,000
2. ₹ 15,000
3. ₹ 12,000
4. ₹ 10,000

Correct Option: A

Given Here , Difference = C.I. - S.I. = ₹ 122 , Time = 3 years , Rate = 5%
Let the difference between CI and SI on a certain sum for 3 years at r % be y ,
Using the given formula ,

Sum =	Difference × (100)³
Sum =	r²(300 + r)

Sum =	122 × 100³
Sum =	25(300 + 5)

Sum =	122000000	= ₹ 16000
	25 × 305