On a certain sum, the difference between compound interest and simple interest at 10% per annum for 2 years is Rs.250. The sum is _________.
Answer & explanation
Correct answer: option 3
Simple at the rate of 15% per annum for 2 years = 10% + 10% = 20%
Compound interest at rate of 10% p.a. for 2 years = 10 + 10 + \(\frac{10×10}{100}\)
= 20 + 1
= 21%
Difference in CI and SI = 21% - 20% = 1%
ATQ,
1% = 250
Initial sum = 100% = 100 × 250 = 25000