{"id":90652,"date":"2025-06-01T10:33:02","date_gmt":"2025-06-01T10:33:02","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=90652"},"modified":"2025-06-01T10:33:02","modified_gmt":"2025-06-01T10:33:02","slug":"the-difference-of-compound-interest-and-simple-interest-of-a-sum-of-mo","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-difference-of-compound-interest-and-simple-interest-of-a-sum-of-mo\/","title":{"rendered":"The difference of compound interest and simple interest of a sum of mo"},"content":{"rendered":"

The difference of compound interest and simple interest of a sum of money at the rate of 5% per year for 2 years is \u20b9250. The sum is<\/p>\n

[amp_mcq option1=”\u20b91,00,000″ option2=”\u20b980,000″ option3=”\u20b940,000″ option4=”\u20b91,20,000″ correct=”option1″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2021<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe principal sum of money is \u20b91,00,000.
\n<\/section>\n
\nThe difference between compound interest (CI) and simple interest (SI) for a sum P at rate R% per annum for 2 years is given by the formula: CI – SI = P * (R\/100)^2.
\n<\/section>\n
\nGiven:
\nRate (R) = 5% per year
\nTime (T) = 2 years
\nDifference (CI – SI) = \u20b9250
\nLet the sum be P.
\nUsing the formula: CI – SI = P * (R\/100)^2
\n250 = P * (5\/100)^2
\n250 = P * (1\/20)^2
\n250 = P * (1\/400)
\nP = 250 * 400
\nP = 1,00,000
\nThus, the sum is \u20b91,00,000.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

The difference of compound interest and simple interest of a sum of money at the rate of 5% per year for 2 years is \u20b9250. The sum is [amp_mcq option1=”\u20b91,00,000″ option2=”\u20b980,000″ option3=”\u20b940,000″ option4=”\u20b91,20,000″ correct=”option1″] This question was previously asked in UPSC CAPF – 2021 Download PDFAttempt Online The principal sum of money is \u20b91,00,000. The … <\/p>\n

Detailed SolutionThe difference of compound interest and simple interest of a sum of mo<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1110,1102],"class_list":["post-90652","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1110","tag-quantitative-aptitude-and-reasoning","no-featured-image-padding"],"yoast_head":"\nThe difference of compound interest and simple interest of a sum of mo<\/title>\n<meta name=\"description\" content=\"The principal sum of money is \u20b91,00,000. 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