The difference between simple and compound interest for the fourth year is Rs. 7280 at 20% p.a. What is the principal sum? A. 70000 B. 50000 C. 40000 D. 10000 Answer Workspace Report Discuss Answer with explanation Answer: Option B Explanation Difference between Ci and SI for nth year, = (Pr /100) *[(1 +(r /100))n-1 -1] → 7280 = (20P/100) *[(1.2)3-1] → P = 50000. Workspace
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