Question

The difference between the compound Interest and the simple interest on a certain principal for 2 years at the Rate of 25÷4 per annum is rs 25.find the principal ​

Answer 1

Step-by-step explanation:

We first find the simple interest and compound interest assuming the principal to be Rs. x. Then, find the difference between S.I. and C.I. Taking this difference for Rs. x we can find the principal.

Let the principal P=Rs. x,R=4% and N=2 years.

Simple interest,

I=100P×N×R=100x×2×4=Rs.1008x

Now compound interest is

A=P(1+100R)n=x(1+1004)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−1008x=1008.16x−8x=1000.16x

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=0.16100×36=22,500. Thus the principal is Rs. 22,500.