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

Answer 1

Let the principal be $P$

Given $\bigg(P×\bigg(1+\frac{5}{100}\bigg)^2-P\bigg)-\bigg(\frac{P×3×3}{100}\bigg) = 1125$

$⇒ P(0.1025-0.09)=1125$

$⇒ P=90000$