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

Calculation:
Net CI rate = 5 + 5 + (5 × 5)/100

⇒ = 10.25%

⇒ Total SI = 3 × 3

⇒  9%

⇒ 10.25% - 9% = 1.25%

⇒ 1.25% = 1125

⇒ 1% = 900

⇒ 100% = 90000

∴ The principal amount is Rs. 90000