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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

A. 625

B. 630

C. 640

D. 650

E. None of these

Answer: Option A

Solution(By Examveda Team)

$$\eqalign{ & {\text{Let}}\,{\text{the}}\,{\text{sum}}\,{\text{be}}\,Rs.\,x.\,{\text{Then}}, \cr & {\text{C}}{\text{.I}}{\text{.}} = {x{{\left( {1 + \frac{4}{{100}}} \right)}^2} - x} \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\frac{{676}}{{625}}x - x} \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = \frac{{51}}{{625}}x \cr & {\text{S}}{\text{.I}}{\text{.}} = {\frac{{x \times 4 \times 2}}{{100}}} \cr & \,\,\,\,\,\,\,\,\,\,\,\,\, = \frac{{2x}}{{25}} \cr & \therefore \frac{{51x}}{{625}} - \frac{{2x}}{{25}} = 1 \cr & \Rightarrow x = 625 \cr} $$

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Comments ( 2 )

  1. Vikas Jouhari
    Vikas Jouhari :
    1 month ago

    And hay 51/625 calculate

  2. Vikas Jouhari
    Vikas Jouhari :
    1 month ago

    Haw 676 calculate plz

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