The difference between simple and compound interests on

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The difference between simple and compound interests on a sum of money at 4% per annum for 2 years is ₹ 8. The sum is

1. ₹ 400
2. ₹ 800
3. ₹ 4,000
4. ₹ 5,000

Correct Option: D

Here , Difference = C.I. - S.I. = ₹ 8 , Time = 2 years , Rate = 4%
Let the sum be P.
When difference between the compound interest and simple interest on a certain sum of money for 2 years at r% rate is y, then the sum is given by:

Sum = Difference ×		100		²
		Rate

Sum = ₹ 8 ×		100		²
		4

Sum = ₹ 8 × 25 × 25 = ₹ 5000