Question
The difference between compound and simple interest on a
sum of money for 2 years at 25% per annum is Rs. 880. The sum is:Solution
Difference of compound interest and simple interest for 2 years = P(R/100)2 = P (25/100)2 ⇒ 880 = P (1/16) ⇒ P = 880 × 16 = Rs. 14,080
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