For the same principal amount, the compound interest for two years at 5% per annum exceeds the simple interest for three years at 3% per annum by Rs 1125. Then the principal amount in rupees is

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Question :

For the same principal amount, the compound interest for two years at 5% per annum exceeds the simple interest for three years at 3% per annum by Rs 1125. Then the principal amount in rupees is

Started 2 weeks ago by Shashank in

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Answer : 90000

Explanatory Answer

Let Principal Amount = x
Compound Interest = \(x(1+0.05)^{2}-x\)
= \(x(1.05)^{2}-x\)
= \(1.1025x-x\)
= \(0.1025x\)
Simple Interest = \({x*3*3 \over {100}}\)
As stated in the question,
CI = SI + 1125
0.1025x = (9x/100) + 1125
1125 = 41x/400 – 9x/100 = 5x/400 = x/80
X = 90000