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The difference between compound interest and simple interest on a certain...

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Compound Interest
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The difference between compound interest and simple interest on a certain sum of money for 2 years at 5% per annum is Rs. 41. What is the sum of money ?

Answer & Solution
Correct Answer: Option C
$$\eqalign{ & \Rightarrow {\text{C}}{\text{.I}}{\text{.}} - {\text{S}}{\text{.I}}{\text{.}} = 41 \cr & \Rightarrow {\text{C}}{\text{.I}}{\text{.}} - {\text{S}}{\text{.I}}{\text{.}} = P{\left( {\frac{r}{{100}}} \right)^2} \cr & \Rightarrow 41 = P\left( {\frac{{25}}{{10000}}} \right) \cr & \Rightarrow P = 16400 \cr} $$
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