The compound interest is ₹ 6.40 more than the simple

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The compound interest is ₹ 6.40 more than the simple interest, if a sum is lent for 2 yr at 8% compound interest. Find the sum.

1. ₹ 1800
2. ₹ 10000
3. ₹ 800
4. ₹ 1000

Correct Option: D

Here, D = ₹6.40, R = 8% and n = 2 yr
Then, according to the formula,
Difference between compound interest and simple interest
D = PR² / 100²
⇒ 6.40 = P x 64/10000
∴ P = ₹ 1000