Question

On what sum of money will the difference between the compound intrest and simple intrest be rs 25 at the rate of intrest charged for both is 5%

Answer 1

Step-by-step explanation:

Let the principal be Rs. P

Given : R=5%,T=24 years

C.I. for 2 years =P(1+1005)2−P

S.I. for 2 years =100P×5×2=10P

∵ Difference between C.I. and S.P. = Rs. 25

P(1+1005)2−P−10P=25

400441P−1011P=25

400441P−440P=25

P=10,000

Hence, the principle should be Rs. 10,000