On what sum of money will the difference between simple interest and…

Question

On what sum of money will the difference between simple interest and compound interest for 2 years at 5% per annum be equal to Rs. 63 ?

Accepted Answer

Option C. Rs. 25200. Answer & Solution Answer: Option C Solution: & Rate of interest = 5\% per annum & Time = 2 year & Accroding to question, & P [ ( 1 + r100 )^n - 1 ] - P × r × t100 = 63 & P [ ( 1 + 5100 )^2 - 1 ] - P × 5 × 2100 = 63 & P [ ( 1 + 5100 )^2 - 1 ] - 10P100 = 63 & P [ ( 105100 )^2 - 1…