The difference between the compound interest and simple interest on a certain sum at 10% per annum for 1(1/2) year is Rs. 8. Find the sum.Choose the best optionClear Response1600120014001800

To solve this problem, we need to understand the formulas for simple interest and compound interest.

The formula for simple interest is: I = PRT/100 Where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time (in years)

The formula for compound interest is: A = P(1 + R/N)^(NT) Where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) R = annual interest rate (in decimal) N = number of times that interest is compounded per year T = time the money is invested for, in years.

Given: R = 10% per annum = 0.10 (in decimal) T = 1.5 years The difference between the compound interest and simple interest is Rs. 8.

Let's denote the sum (or the principal amount) as P.

According to the problem:

Compound Interest - Simple Interest = 8

Substituting the formulas:

P(1 + R/N)^(NT) - P - PRT/100 = 8

Solving this equation will give us the value of P.

However, without the value of N (number of times that interest is compounded per year), we cannot solve this equation. The problem needs to provide this information.