On a certain sum, the difference between compound interest and simple interest at 10% per annum for 2 years is Rs.250. The sum is _________.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 25,000.
Given that
C.I. - S.I. = Rs. 250
Rate of interest (R) = 10%
Time = 2 years
Formula used
For 2 years
C.I. - S.I. = P (R/100)2
Where, P = A certain sum
Calculation
250 = P (10/100)2
P = Rs. 25000