Question:The difference between the compound interest and simple interest earned at the end of second year on a sum of money at `10%`per annum is Rs. `20`.The sum is : 

A `Rs.4000` 
B `Rs. 2000` 
C `Rs. 1500` 
D Date inadequate 

+ Answer
B 

+ Explanation
Let the principal be Rs. x. Then,

C.I`= [ x (1 + 10/100)^2`

S.I.`= ((x xx 10 xx 2)/100)`

`= x/5`

:. (C.I) - (S.I)

`= ((21x)/100 - x/5)`

`= x/100`

`:. x/100 = 20`

`or x = 2000`

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