Question

Only for scholars please tell me answer of this question in easy way but Step-by-step
the simple interest on some principal at the rate of 3 years is Rupees 525 at the same rate the compound interest on rupees 1600 for 2 years is rupees 164 what is the principle?

Answer 1

Answer:

Principal = Rs.3,500/-

Step-by-step explanation:

Let the Principal be P and the rate of interest be r

Hence 525 = P*3*r/100

At the same rate of interest r, the compound interest on a principal of Rs 1,600 for 2 years is 164.

Hence,

164 = 1600 ((1+r)²-1)

164 = 1600(1+r)²-1600

1764/1600 = (1+r)²

1+r = 42/40

40+40r = 42

40r = 2

r = 2/40 = 1/20 = 5%

So,

525 = P * 3 * 5/100

P = 52500/15 = 3,500