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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
Correct answer is '90000'. Can you explain this answer?
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For the same principal amount, the compound interest for two years at ...
Let the principal be P.
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For the same principal amount, the compound interest for two years at ...
Solution:
Let the principal amount be P.
Given, compound interest for two years at 5% per annum exceeds the simple interest for three years at 3% per annum by Rs 1125.
We know that,
Compound Interest = P(1 + R/100)^n - P
Simple Interest = PNR/100
Where P is the principal amount, R is the rate of interest and n is the number of years.
Using the above formulae, we can form the following equations:
Compound Interest = P(1 + 5/100)^2 - P = P(21/20)^2 - P = 441P/400 - P
Simple Interest = P * 3 * 3/100 = 9P/100
Given, Compound Interest - Simple Interest = Rs 1125
=> 441P/400 - P - 9P/100 = 1125
On solving the above equation, we get P = Rs 90000.
Therefore, the principal amount is Rs 90000.
Let the principal amount be P.
Given, compound interest for two years at 5% per annum exceeds the simple interest for three years at 3% per annum by Rs 1125.
We know that,
Compound Interest = P(1 + R/100)^n - P
Simple Interest = PNR/100
Where P is the principal amount, R is the rate of interest and n is the number of years.
Using the above formulae, we can form the following equations:
Compound Interest = P(1 + 5/100)^2 - P = P(21/20)^2 - P = 441P/400 - P
Simple Interest = P * 3 * 3/100 = 9P/100
Given, Compound Interest - Simple Interest = Rs 1125
=> 441P/400 - P - 9P/100 = 1125
On solving the above equation, we get P = Rs 90000.
Therefore, the principal amount is Rs 90000.
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For the same principal amount, the compound interest for two years at ...
Let the principal be P.
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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 isCorrect answer is '90000'. Can you explain this answer?
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