The difference between simple and compound interests compounded annua…

Question

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 1. The sum (in Rs.) is:

Accepted Answer

Option A. 625. Answer & Solution Answer: Option A Solution: & Let\, the\, sum\, be\,Rs.\,x.\, Then, & C .I . = x ( 1 + 4100 )^2 - x & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = 676625x - x & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = 51625x & S .I . = x × 4 × 2100 & \,\,\,\,\,\,\,\,\,\,\,\,\, = 2x25 & 51x625 - 2x25 =…