The difference between compound and simple interest on a sum of money for 2 years at 5% per annum is Rs. 724. The sum is:
Difference of compound interest and simple interest for 2 years = P(R/100)2 = P (5/100)2 ⇒ 724 = P (1/400) ⇒ P = 724 × 400 = Rs. 2,89,600
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