The difference between the compound interest and the simple interest on a certain sum at 8% per annum for 2 years is ₹144. What is the amount (in ₹)?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 22,500.
Given:
The difference between the compound interest and the simple interest on a certain sum at 8% per annum for 2 years is ₹144
Formula used:
Difference between compound interest and simple interest = P(R/100)2 where
P = Principal, R = rate and T = time
Calculations:
⇒ 144 = P(8/100)2
⇒ 144 = P(64/10000)
⇒ P = 22500