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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 |
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Answer» -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.1008xNow compound interest isA=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=1000.16xThe 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. |
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