Question

For the same principal amount, the compound interest for two years at 5% per annum exceeds the simple interest for three years at 3% per annum by Rs 1125. Then the principal amount in rupees is ?
[This Question was asked as TITA]

• A. Rs. 60000
• B. Rs. 70000
• C. Rs. 100000
• D. Rs. 90000

Answer 1

The Correct Option is D

Let the principal be \(P\)

Given  \(\bigg(P×\bigg(1+\frac{5}{100}\bigg)^2-P\bigg)-\bigg(\frac{P×3×3}{100}\bigg) = 1125\)

\(⇒ P(0.1025-0.09)=1125\)

\(⇒ P=90000\)

So, the correct option is (D): Rs. 90000

Answer 2

\(P(1.05)^2 – P = CI\)
\(P × 3 × \frac{3}{100} = SI\)
\(CI = 0.1025 P\)
\(SI = 0.09P\)
\(CI – SI = 0.0125P \)
\(\frac{125}{10000} P = 1125\)
\(P = 90000\)

So, the correct option is (D): Rs. 90000