2017 · Q37
The difference between the simple and the compound interest on a certain sum of money at 4% per annum in 2 years is ₹ 10. What is the sum ?
Elementary MathematicsSimple and Compound Interest
- A₹ 5,000
- B₹ 6,000
- C₹ 6,250
- D₹ 7,500
Explanation
This uses the two-year CI–SI difference formula: CI - SI = P(r/100)². So P × (0.04)² = 10, giving P = 10/0.0016 = ₹6,250. Checking: SI = ₹500, CI = 6250(1.04² - 1) = ₹510, difference ₹10, as required. Option (a) ₹5,000 would give a difference of only ₹8. Hence option (c).