Multiple choice

The difference between compound interest and simple interest on a sum for 2 years at 8% is Rs.768. Find the sum.

  1. Rs.100000

  2. Rs.110000

  3. Rs.120000

  4. Rs.170000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Difference between CI and SI for 2 years = P * (r/100)^2. 768 = P * (8/100)^2 = P * (64/10000). P = 768 * 10000 / 64 = 12 * 10000 = 120000.

AI explanation

Using the direct formula for the difference between compound interest and simple interest for two years, Sum = (Difference * 100 * 100) / (Rate * Rate). We calculate Sum = (768 * 10000) / (8 * 8), which simplifies to 7680000 / 64. The sum borrowed is Rs. 120000.

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