Question
Simple interest on a sum for 2 years is Rs. 300 and
compound interest for same period is Rs. 315. Find the principal. (Rate of interest is same for both.)Solution
Simple interest = 300
Principal x Rate x 2 = 30000
Principal x Rate = Rs.15000 ... (1)
Now, Simple interest for 2 years = Rs.300
Compound interest for 2 years = Rs.315
Difference between SI and CI for 2 years = Rs.15
Which can also be written as,
Principal x Rate x Rate/10000 = 15
From eq(1),
15000 x Rate = 150000
Rate = 10%
From eq(1),
Principal = 15000/10 = Rs.1500
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