Question

At 4% per annum, the difference between simple and compound interest for 2 years on a certain sum of money is Rs. 80. Then the principal sum is (the interest is compounded annually)
at Rs. 40.000 (B) Rs. 50,000
(C) Rs. 5,000
(D) Rs. 4.000
​

Answer 1

Answer:

d =P (r/loo) 2

d = difference in int:

P=sum

r=rate

80 =p(4/100) 2

P = 80 x 10000 / 16= Rs.50000

Principal sum= Rs 50000. (B)