The difference between compound and simple interest on a certain sum at 10% rate for two years is Rs. 12. What is the sum ?

- 1350
- 1400
- 1200
- 1250

Option 3 : 1200

**Given: **

C.I - S.I = Rs. 12

Time = 2 years

Rate = 10%

**Formula used:**

C.I - S.I = P(R)^{2}/(100)^{2}

**Calculation:**

According to the question,

12 = P(10)^{2}/100^{2}

⇒ P = 12 × 10000/100

⇒ P = 1200

**∴**** The sum is Rs. 1200. **

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