The difference between the simple and compound interest compounded annually of a sum at 12% p.a. for 2 years is Rs. 180. Find the sum.
Let the sum = Rs. x According to the question, x(1 + 12/100)2 – x – x × 12% × 2 = 180 784x/625 – x – 6x/25 = 180 159x/625 – 6x/25 = 180 9x/625 = 180 x = Rs. 12500
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