Multiple choice

What is the sum if the difference between the compound and simple interest on a certain sum at $14\%$ per annum for $2$ years is Rs. $100$?

  1. $3102$
  2. $4102$
  3. $5102$
  4. $6102$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Difference between CI and SI for 2 years = P * (r/100)^2. 100 = P * (14/100)^2 = P * (0.14)^2 = P * 0.0196. P = 100 / 0.0196 = 5102.04.

AI explanation

Using the formula for the difference between compound interest and simple interest for two years, the difference equals Principal multiplied by (Rate divided by 100) squared. Substituting the given values, 100 equals Principal multiplied by (14 divided by 100) squared. Solving for the Principal gives 100 divided by 0.0196, which equals 5102.

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