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The difference between compound interest and simple interest on a certain amount of money at 5% per annum for 2 years is Rs. 45. Find the sum:
  • a)
    Rs. 18,000
  • b)
    Rs. 17500
  • c)
    Rs. 15000
  • d)
    Rs. 16000
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The difference between compound interest and simple interest on a cert...
Let the sum amount be ‘x’

Simple interest = (x × 2 × 5)/100 = 0.1x
According to the given conditions,
⇒ 0.1025x - 0.1x = 45
∴ x = 18,000
∴ The required sum is Rs. 18,000
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The difference between compound interest and simple interest on a certain amount of money at 5% per annum for 2 years is Rs. 45. Find the sum:a)Rs. 18,000b)Rs. 17500c)Rs. 15000d)Rs. 16000Correct answer is option 'A'. Can you explain this answer?
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