The difference between Compound Interest and Simple Interest on a certain sum for 2 years at 12.5% rate is Rs.45. What is the sum?

Correct option is C

Given:
Time = 2 years
Rate = 12.5%
Difference of the compound and simple interest of 2 years = Rs. 45
Formula used:
Difference of the compound and simple interest of 2 years = $$P \left(\frac{R}{100}\right)^2$$​​
Solution:

​$$P \left(\frac{R}{100}\right)^2 = 45 \\P \times \frac{12.5}{100} \times \frac{12.5}{100} = 45 \\P = \text{Rs. } 2880 \\\text{Then sum } = \text{Rs. } 2880$$​​