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The difference between compound interest and simple interest on a sum for 2 years at 8% per annum is ₹128. Find the sum (answer in ₹).

Competition practiceSimple & Compound Interest

A18000
B22000
C25000
D20000

Step-by-Step Solution

For 2 years, difference =

P \times (r /100)^{2} = P \times (0.08)^{2} = 0.0064 P

. So

0.0064 P = 128

, giving

P

= ₹20000.

Answer: D) 20000

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