The difference between compound and simple interest on a sum of money for 2 years at 4% per annum is Rs. 626. The sum is:
Difference of compound interest and simple interest for 2 years = P(R/100)2= P (4/100)2 ⇒ 626 = P (1/625) ⇒ P = 626 × 625 = Rs. 3,91,250
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