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(A) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $2$ years is given by: Difference $= \frac{P 	imes

Vedclass · Accepted Answer

$625$

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(A) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $2$ years is given by: Difference $= \frac{P 	imes R^2}{100^2}$ Where $P$ is the principal sum and $R$ is the rate of interest per annum. Given: Difference $= 1$,$R = 4$,and time $= 2$ years. Substituting the values into the formula: $1 = \frac{P 	imes 4^2}{100^2}$ $1 = \frac{P 	imes 16}{10000}$ $P = \frac{10000}{16}$ $P = 625$ Thus,the sum is $Rs. 625$.

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

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