The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 10. The sum (in Rs.) is:a)Rs. 125b)Rs. 5,000c)Rs. 6,250d)Rs. 11,250Correct answer is option 'C'. Can you explain this answer?

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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 10. The sum (in Rs.) is:

a)
Rs. 125
b)
Rs. 5,000
c)
Rs. 6,250
d)
Rs. 11,250

Correct answer is option 'C'. Can you explain this answer?

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Verified Answer

The difference between simple and compound interests compounded annual...

Interest from simple interest = PRT/100
The formula for CI at annual compound interest, including principal sum, is:

Where:
CI = Compound Interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for
Let the principal be P
(P(1 + 4/100)² - P) - (P × 4 × 2)/100 = 10
P = Rs. 6,250

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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 10. The sum (in Rs.) is:a)Rs. 125b)Rs. 5,000c)Rs. 6,250d)Rs. 11,250Correct answer is option 'C'. Can you explain this answer?

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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 10. The sum (in Rs.) is:a)Rs. 125b)Rs. 5,000c)Rs. 6,250d)Rs. 11,250Correct answer is option 'C'. Can you explain this answer? for Defence 2024 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 10. The sum (in Rs.) is:a)Rs. 125b)Rs. 5,000c)Rs. 6,250d)Rs. 11,250Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Defence 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 10. The sum (in Rs.) is:a)Rs. 125b)Rs. 5,000c)Rs. 6,250d)Rs. 11,250Correct answer is option 'C'. Can you explain this answer?.

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