# CAT 2020 Quant Question [Slot 2] with Solution 25

Question

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

Option: 90000
Solution:

Let the principal be P.

Given $\left( {P \times {{\left( {1 + \frac{5}{{100}}} \right)}^2} - P} \right) - \left( {\frac{{P \times 3 \times 3}}{{100}}} \right) = 1125$

$\Rightarrow P(0.1025 - 0.09) = 1125$

$\Rightarrow P = 90,000$

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