Multiple choice

The difference between the compound interest and simple interest on a certain sum at 12% per annum for 2 years is 126.72. Find the sum.

  1. 8000

  2. 8800

  3. 10200

  4. 12400
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 2 years, the difference between compound and simple interest is P * (r/100)^2. Here, 126.72 = P * (12/100)^2. So 126.72 = P * (0.12)^2 = P * 0.0144. P = 126.72 / 0.0144 = 8800.

AI explanation

The formula for the difference between compound interest and simple interest for two years is Difference = P * (R / 100)^2. Substituting the given values gives 126.72 = P * (12 / 100)^2. This simplifies to 126.72 = P * 0.0144, and solving for P gives 8800.

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