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 ?
[This Question was asked as TITA]

• A. Rs. 60000
• B. Rs. 70000
• C. Rs. 100000
• D. Rs. 90000

Answer 1

Answer: (D)

Rs. 90000

Answer 2

Let the principal be $P$

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

$⇒ P(0.1025-0.09)=1125$

$⇒ P=90000$

So, the correct option is (D): Rs. 90000