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?
Choose the correct choice.
A) 625
B) 827
C) 657
D) 726
E) 634
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
<result>A</result>
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?