The difference between the simple interest and the compound interest, compounded annually, on a certain sum of money for 2 years at 16% per annum is ₹797. Find the sum (rounded off to the nearest integer).

Question

Question

This question was previously asked in

RRB NTPC Graduate Level CBT-I Official Paper (Held On: 05 Jun, 2025 Shift 1)

Answer 1

Given:

Rate (r) = 16% per annum

Time (t) = 2 years

Difference between CI and SI = ₹797

Formula used:

Difference (CI − SI) for 2 years = \(P × \left(\frac{r}{100}\right)^2 \)

Calculation:

\(797 = P × \left(\frac{16}{100}\right)^2\)

⇒ \(797 = P × \frac{256}{10000}\)

⇒ \(P = \frac{797 × 10000}{256} = \frac{7970000}{256}\)

⇒ \(P ≈ 31,133\)

∴ The correct answer is ₹31,133 (rounded to nearest integer).