The difference between the compound interest and simple interest on a sum for 2 years at 10% p.a. is ₹15. What is the sum?
Show answer & explanation
Correct answer: C
Explanation
Given:
Rate = 10% per annum
Time = 2 years
Difference between compound interest and simple interest = ₹15
Formula:
For 2 years
Difference = P × (R/100)²
15 = P × (10/100)²
15 = P × (1/10)²
15 = P × 1/100
P = ₹1500