Exams › SSC CGL (Prelims) › Maths

The difference between the simple interest and compound interest on a certain sum of money for 2 years at 4% per annum is ₹4. The sum is:

1. ₹ 2500
2. ₹ 2400
3. ₹ 2600
4. ₹ 2000

Correct answer: ₹ 2500

Solution

For 2 years, the difference between compound interest and simple interest is \(P\left(\frac{r}{100}\right)^2\). Here, \(4 = P\left(\frac{4}{100}\right)^2\). Solving gives \(P = 2500\).

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