If the difference between the compound interest and simple interest on a certain sum at the rate of 5% per annum for 2 years is Rs. 20, then the sum is = ?

Solution (By Examveda Team)

Let the sum be = 400x
Simple Interest = $$\frac{{PTR}}{{100}}$$
S.I = $$\frac{{400x \times 2 \times 5}}{{100}}$$ = 40x
for Compond Interest 5% = $$\frac{{1}}{20}$$

C.I = 20x + 20x + x = 41x
Difference = 41x - 40x = 20
i.e. x = 20
∴ Sum is = 400 × 20 = 8000