Question

Simple interest on a certain sum of money for 4 years at 4% per annum exceeds the compound interest on the same sum for 3 years at 5 percent per annum by Rs. 228. Find the sum.

Answer 1

Principal = P
Simple interest = $P\times \frac{4}{100}\times 4years=0.16P$

Compound interest = $P\times (1+\frac{5}{100}{)}^3=1.157625P-P=0.157625P$

Given, $0.16P-0.157625P=Rs228P=Rs96000$