If the difference between compound interest, compounding annually and simple interest on a certain sum at 10% per annum for 2 years is ₹464, then find the sum invested.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs. 46,400.
To find the difference between compound interest and simple interest for two years there is a formula
Difference = PR2/1002
where, P = Principal, R = rate
Now, according to the question
⇒ 464 = P × 102/1002
⇒ (464 × 1002)/102 = P
⇒ (464 × 10000)/100 = P
⇒ P = Rs.46400
Hence, the sum invested is Rs.46400