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.
Correct Answer: ₹ 1000
Explanation:
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
