Simple Interest – Comparing two scenarios to find the principal: For a certain principal S, the simple interest in 2 years at 8% per annum is ₹ 110 more than the simple interest in 1 year at 5% per annum (on the same S). Find S.

Introduction / Context:
We compare two simple-interest amounts for the same principal under different time-rate pairs.

Given Data / Assumptions:

• SI1 = S * 8% * 2 = 0.16 S
• SI2 = S * 5% * 1 = 0.05 S
• SI1 - SI2 = ₹ 110

Concept / Approach:
Set up the difference equation and solve for S.

Step-by-Step Solution:
0.16 S - 0.05 S = 110 → 0.11 S = 110 → S = 1000

Verification / Alternative check:
SI1 = ₹ 160; SI2 = ₹ 50; difference = ₹ 110 (checks).

Why Other Options Are Wrong:
₹ 5000, ₹ 1050, ₹ 950 do not satisfy the difference condition.

Common Pitfalls:
Misinterpreting 8% for 2 years as 8% total.

Final Answer:
₹ 1000