Question

The difference between compound and simple interest on a sum of money for 2 years at 4% per annum is Rs. 626. The sum is:

Q: The difference between compound and simple interest on a sum of money for 2 years at 4% per annum is

Difference of compound interest and simple interest for 2 years = P(R/100) 2 = P (4/100) 2 ⇒ 626 = P (1/625) ⇒ P = 626 × 625 = Rs. 3,91,250

A 3,89,600

B 3,96,080

C 3,75,600

D 3,91,250

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The difference between compound and simple interest on a sum of money for 2 years at 4% per annum is Rs. 626. The sum is:

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