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 = ?
A. Rs. 2000
B. Rs. 4000
C. Rs. 6000
D. Rs. 8000
Answer: Option D
Solution(By Examveda Team)
Let the sum be = 400xSimple 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
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