If the difference between the simple and compound interests on a sum of money for 2 years at 4% per annum is 80, the sum is :
Options:
A . 1000
B . 5000
C . 10000
D . 50000
Answer: Option D Answer: (d)Using Rule 6,When difference between the compound interest and simple interest on a certain sum of money for 2 years at r % rate is x, then the sum is given by$x(100/r)^2$ Here x = Rs.80, r = 40%Required sum = 80$(100/4)^2$= 80 × 25 × 25 = Rs.50000
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