The difference of compound interest and simple interest of a sum of money at the rate of 5% per year for 2 years is ₹250. The sum is
₹1,00,000
₹80,000
₹40,000
₹1,20,000
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2021
Rate (R) = 5% per year
Time (T) = 2 years
Difference (CI – SI) = ₹250
Let the sum be P.
Using the formula: CI – SI = P * (R/100)^2
250 = P * (5/100)^2
250 = P * (1/20)^2
250 = P * (1/400)
P = 250 * 400
P = 1,00,000
Thus, the sum is ₹1,00,000.