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Question 8 : 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

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Video Explanation

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Explanatory Answer

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

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The question is "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"

Hence, the answer is, " 90000"