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 ?

A. Rs. 7200

B. Rs. 9600

C. Rs. 16400

D. Rs. 8400

Answer: Option C

Solution(By Examveda Team)

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