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The difference between SI and CI on a sum of money at the rate of 5% per annum for two years is 25. What is the principal? (a) * 1000 (b) * 10,000 (C) 5000 (d) 2500​

Answer» HOPE this helps you Mark it as BRAINLIEST EXPLANATION:The difference between simple interest and COMPOUND interest is Rs. 25 . So according to formula,Simple interest is=>I=(P×R×T)/(100) =>P=(I×100)/(R×T) Compound interest formula=> FV = P×(1+R/100})^T Here FV = P + Total Interest => I = P×(1×R/100)^T -P So by equating condition mentioned in question where R=5% and T=2 years and difference is 25=>(P×R×T)/100+25=P×(1+R/100)T−P =>(P×5×2)/100+25=P×(1+5/100)2−P =>(10P+2500)/100=P∗(1.05)2−P =>(10P+2500)/100=0.1025P =>(10P+2500)=10 . 25P =>0.25P=2500 =>P=2500/0.25 =>10000 Hopes that answers your question.Edit: made mistake in calculation when multiplying 0.1025 with 100, corrected


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