he difference (in ₹) between C.I. and S.I. on a certain sum at 12 % per annum compounded annually for 2 years is ₹360. Find the sum (in ₹).

Correct option is D

Given:

Rate of interest = 12% per annum

Time = 2 years

Difference between Compound Interest (C.I.) and Simple Interest (S.I.) = ₹360

Formula Used:

The difference between C.I. and S.I. is given by:
C.I. - S.I. = $$\frac{P \times R^2}{100^2}$$​​

Solution:
The difference between C.I. and S.I. is ₹360. Therefore,
​$$\frac{P \times 12^2}{100^2} = 360 \\ \ \\\frac{P \times 144}{10000} = 360 \\ \ \\P \times 144 = 360 \times 10000 \\ \ \\P= \frac{360 \times 10000}{144} \\ \ \\P = 25000$$​​
The sum (Principal) is ₹25,000.