Question:medium

The difference between the CI and the SI on a sum of money lent for 2 years at 20% interest per annum is 80. The sum is:

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For 2 years, the difference between CI and SI is simply the "interest on the first year's interest."
Interest for 1st year = $20\% \text{ of } P$.
Difference = $20\% \text{ of } (20\% \text{ of } P) = 80$.
$0.04P = 80 \implies P = 2000$.
Updated On: May 15, 2026
  • ₹2,000
  • ₹1,200
  • ₹1,500
  • ₹1,000
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The Correct Option is A

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