If the difference between simple interest and compound interest on a sum of money invested for 2 years at the rate of 15% per annum (interest compounded annually) is Rs. 225, then what is the sum?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 10000.
For 2 years,
The difference between the ci and si = P × (r/100)2
225 = P (15/100)2
⇒ P = Rs 10000