The difference between the compound interest (compounding annually) and simple interest on a sum at the rate of 50 percent per annum for 2 years is Rs. 7200. What is the sum?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs. 28800.
Difference for 2 years
Difference = PR2/1002
⇒ 7200 = (P × 50 × 50)/(100 × 100)
⇒ 7200 = (P × 2500)/10000
⇒ 7200 = (P × 25)/100
⇒ 720000 = P × 25
⇒ P = Rs. 28800