A man borrowed some money from a private organisation at

A man borrowed some money from a private organisation at 5% simple interest per annum. He lended this money to another person at 10% compound interest per annum, and made a profit of Rs. 26,410 in 4 years. The man borrowed

Let the principal be Rs. P.

For 4 years, S.I. =	Principal × Time × Rate
	100

S.I. =	P × 4 × 5	= Rs.	P
	100		5

C.I. = P			1 +	R		^T	− 1
				100

C.I. = P			1 +	10		⁴	− 1
				100

C.I. = P			11		⁴	− 1
			10

C.I. = P		14641	− 1
		10000

C.I. =	4641P
C.I. =	10000

According to the question,
∴ C.I. - S.I. = 26410

4641P	−	P	= 26410
10000		5

⇒	4641P − 2000P	= 2641
	10000

⇒	2641P	= 2641
	10000

⇒ P = Rs. 10000