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The difference between the compound and simple interest on a certain sum for 2 years at the rate of 8% per annum is Rs.80,What is the sum?
  • a)
    11,880
  • b)
    12,500
  • c)
    13,250
  • d)
    14,270
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
The difference between the compound and simple interest on a certain s...
Difference in simple and compound interest at the end of 2 years occurs because there is interest on first year interest. So Difference = P×(R100)2P×(R100)2
⇒ 80 = P×(8100)2P×(8100)2
⇒ P=80×(1008)2P=80×(1008)2 = 12,500
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The difference between the compound and simple interest on a certain sum for 2 years at the rate of 8% per annum is Rs.80,What is the sum?a)11,880b)12,500c)13,250d)14,270Correct answer is option 'B'. Can you explain this answer?
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