Question

5. The difference between the compound interest and the simple interest on a certain principal for 2 years at the rate of 6¼% per annum is 25Rs. Find the principal.
explain step- step​

Answer 1

Answer:

N=2 years.

Simple interest,

I=

100

P×N×R

=

100

x×2×4

=Rs.

100

8x

Now compound interest is

A=P(1+

100

R

)

n

=x(1+

100

4

)

2

=x(1.04)

2

=(1.0816)x Rs.

Hence the compound interest =1.0816x−x=0.0816x.

Now, C.I. - S.I. =0.0816x−

100

8x

=

100

8.16x−8x

=

100

0.16x

The difference in CI and SI is Rs. 0.16 when the principal is Rs. x.

But the difference is Rs. 36 then the principal is x=

0.16

100

×36=22,500. Thus the principal is Rs. 22,500.

Step-by-step explanation:

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