The difference between the compound interest and simple interest on a certain sum at 10% p.a. for 2 years is Rs.631. Then the sum isA Rs. 63,000 B Rs. 62,000 C Rs. 60,000 D Rs. 63,100
Question
The difference between the compound interest and simple interest on a certain sum at 10% p.a. for 2 years is Rs.631. Then the sum isA Rs. 63,000 B Rs. 62,000 C Rs. 60,000 D Rs. 63,100
Solution
The difference between compound interest and simple interest for 2 years is given by the formula:
P*(r/100)^2
Where: P is the principal amount (the sum we are trying to find) r is the rate of interest
Given in the problem, the difference is Rs. 631 and the rate of interest is 10%. We can substitute these values into the formula and solve for P:
631 = P*(10/100)^2 631 = P*(0.1)^2 631 = P*0.01 P = 631 / 0.01 P = Rs. 63,100
So, the sum is Rs. 63,100. The correct option is D.
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