Answer: Option A
The given problem involves finding the loss suffered by Indu if she had given Rs 1250 to Bindu on simple interest for two years at a rate of 4% per annum.
To solve this problem, we need to first calculate the amount that Bindu would receive on simple interest.
Simple Interest (SI) formula: SI = Prt/100, where P is the principal amount, r is the rate of interest, and t is the time period.
Here, P = Rs 1250, r = 4%, and t = 2 years.
SI = (1250 * 4 * 2)/100 = Rs 100
Therefore, Bindu would receive Rs 1350 at the end of 2 years on simple interest.
Now, to calculate the loss suffered by Indu, we need to find the difference between the amount given to Bindu on simple interest and the amount that she would have received on compound interest.
Compound Interest (CI) formula: A = P(1 + r/100)^t, where A is the amount after t years, P is the principal amount, r is the rate of interest, and t is the time period.
Here, P = Rs 1250, r = 4%, and t = 2 years.
A = 1250(1 + 4/100)^2 = Rs 1369.04
Loss suffered by Indu = CI - SI
= Rs 1369.04 - Rs 1350
= Rs 19.04
Therefore, Indu would suffer a loss of Rs 19.04 if she had given Rs 1250 to Bindu on simple interest instead of compound interest.
However, the question asks for the amount of loss suffered by Indu, which is not given as an option. The closest option is Option A, which states that the loss suffered is Rs 2. This is incorrect, as we have calculated the loss to be Rs 19.04.
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