Multiple choice

Find the sum of which the difference between the simple interest and the compound interest at the rate of 8% per annum compounded annually be Rs. 64 in 2 years.

  1. Rs. 8,000

  2. Rs. 10,000

  3. Rs. 12,000

  4. Rs. 15,000
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B Correct answer
Explanation

The difference between CI and SI for 2 years is P * (r/100)^2. Given 64 = P * (8/100)^2, 64 = P * (64/10000), so P = 10000.

AI explanation

Use the formula for the difference between compound interest and simple interest for two years, which is (PR^2)/10000, where R is the rate. Here, the difference is Rs. 64 and the rate is 8%, so substituting the values gives 64 = (P * 8 * 8) / 10000. Solving this yields 64 = 64P / 10000, meaning P = 10000. The required sum is Rs. 10,000.

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