If the difference between the simple and compound interests

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If the difference between the simple and compound interests on a sum of money for 2 years at 4% per annum is ₹ 80, the sum is :

1. ₹ 5000
2. ₹ 50000
3. ₹ 10000
4. ₹ 1000

Correct Option: B

Here , sum ( P ) = ? , Difference = C.I. - S.I. = ₹ 80 , Rate ( r ) = 40%
When difference between the compound interest and simple interest on a certain sum of money for 2 years at r % rate is P, then

Sum = ( C.I. - S.I. )		100		²
		r

∴ Required sum = 80		100		²
		4

Required sum = 80 × 25 × 25 = ₹ 50000