The difference between simple and compound interest compounded annually, on a certain sum of money for 2 years at 4% per annum is 1. The sum (in ) is :
Options:
A . 640
B . 650
C . 625
D . 630
Answer: Option C Answer: (c)Using Rule 6,The difference between compound interest and simple interest for two years= ${\text"Principal" × (Rate)^2}/{100 × 100}$1 = ${\text"Principal" × (4)^2}/10000$Principal = $10000/16$ = Rs.625
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