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  1. If the difference between the compound interest and the simple interest on a certain sum at the rate of 5% per annum for 2 years is Rs. 20, then the sum is :
    1. Rs. 2000
    2. Rs. 4000
    3. Rs. 6000
    4. Rs. 8000
Correct Option: D

Here , Principal = ? , C.I. - S.I. = Rs. 20 , Time = 2 years , Rate = 5%

For 2 years, C.I. – S.I. =
PR2
10000

⇒  20 =
P × 5 × 5
10000

⇒ 
P
= 20
400

⇒  P = Rs. (20 × 400) = Rs. 8000



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