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2015-04-06T11:16:06+05:30

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Principal = P
Simple interest = P *  4/100 * 4 years = 0.16 P

Compound interest = P * (1 + 5/100)³ = 1.157625 P - P = 0.157625 P

   Given,  0.16 P - 0.157625 P = Rs  225

             P = Rs 94,736. 84

2 5 2
Ans is 96000 but how??
then the Difference in the interests is not Rs 225, but it is Rs 228. please check if you have entered data correctly. If SI - CI = Rs 228, then Principal sum = Rs 96,000.
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