The difference between compound interest and simple interest on a certain amount of money at 5% per annum for 2 years is 16. Find the sum : Choose the correct choice:
A) 4500 B) 7500 C) 5000 D) 6400 E) None of these
Sol.(d) Let the sum be 100.   Therefore, SI = 100×5×2/100=10   and CI = 100(1+5/100)2−100   ∴ =100×21×21/20×20−100=41/4   6400ifference of CI and SI = 41⁄4 - 10 = 1⁄4   If the difference is 1⁄4 , the sum = 100   =&gt; If the difference is 16, the sum   = 400 × 16 = 6400 Answer 6400
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The difference between compound interest and simple interest on a certain amount of money at 5% per annum for 2 years is 16. Find the sum :