The difference between the compound interest and simple interest on a certain sum for 2 years at 15% per annum is ₹45. Find the sum.
Answer & explanation
Correct answer: option 3
Let the principal be Rs. P.
According to the question,
The difference between the compound interest and simple interest for 2 years = PR2/(100)2
⇒ 45 = P × 15 × 15/10000
⇒ P = Rs.2000
∴ The value of the sum is Rs. 2000.