The difference between the simple interest on a certain sum at the rate of 10% per annum for 2 years and compound interest which is compounded every 6 months is Rs 124.05.what is the principal sum?

• let prinicipal sum is P
  SI=(P*10*2)/100=P/5
  CI=amount-sum //here R=10/2=5 and time=6/12*2=1year
  amount=P(1+5/100)^1=21P/20
  so CI=(21P/20)-P=P/20
  
  so according to question
  
  SI-CI=124.05
  so P/5-P/20=124.05
  
  so prinicipal sum P=827
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