The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs. ) is? Answers:	A) 625	B) 286	C) 266	D) 191	E) 811
Explanation:   Let the sum be Rs. x. Then,   [x (1 + 4/100)2 - x] = (676/625 x - x) = 51/625 x   S.I. = (x * 4 * 2)/100 = 2x/25   51x/625 - 2x/25 = 1 or x = 625.   625nswer: 625
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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs. ) is?