The difference between compound and simple interest on a certain sum of money for 2 years at 4% p.a. is Rs. 10. The sum of money is:

Rs. 6000 Rs. 6250 Rs. 5600 Rs. 6500

Rs. 6250

4% = \(\frac{1}{25}\) \(\frac{difference}{Principal}\) = \(\frac{1^2}{25^2}\) = \(\frac{1}{625}\) Now, ATQ ⇒ 1R = Rs.10 ⇒ Principal = 625R = 625 × 10 = Rs.6250