Correct Answer: Rs. 1400

Explanation:

We know thatThe Difference between Compound Interest and Simple Interest for n years at R rate of interest is given by  C . I n - S . I n = P R 100 n

Here n = 2 years, R = 20%, C.I - S.I = 56

$$\begin{gathered} 56 = P 20 100 2 \\ = > P = 56 x 5 2 \\ = > P = 56 x 25 \\ = > P = Rs . 1400 \end{gathered}$$