The difference between the simple interest and compound interest obtained on a principal amount at 5% per annum after two years is Rs.35. What is the principal amount?

• Rs. 14000
  
  If principal amount=x, then
  Compound interest=x[1+(5/100)^2]- x ----(i) &
  Simple interest=x*2*5/100 ----(ii)
  As the difference of these two interests is 35, Subtracting (ii) from (i)
  x*[1+(5/100)^2]- x - (x*2*5/100)=35
  On solving, x=14000
• 9 years agoHelpfull: Yes(8) No(2)
• diffrence should be 135 then Question will be correct
• 8 years agoHelpfull: Yes(1) No(0)
• difference between SI &CI for two yrs is D=pa(r/100)^2l
  let pa=x
  35=x[(5/100)^2]
  by solving x=14000
• 7 years agoHelpfull: Yes(1) No(0)
• 14000 will be the answer by using c.I - s.I =35
• 8 years agoHelpfull: Yes(0) No(0)