# The Difference Between Simple and Compound Interests Compounded Annually on a Certain Sum of Money for 2 Yr at 4% per Annum is ₹1. the Sum (In₹) is - Mathematics

MCQ

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is ₹1. The sum (in₹) is

• ₹625

• ₹630

• ₹640

• ₹650

#### Solution

₹625
Explanation :
Let the sum be ₹x. Then,

x = 1(100/4)^2 ⇒ x = ₹625

Concept: Simple and Compound Interest
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