Let the principal be P.
Time = 2 years
Rate = 20% per annum
Simple Interest formula: SI = 100P×R×T
SI =100P×20×2
SI =10040P
SI =0.4P
Compound Interest formula: CI = P×[(1+100R)n−1]
CI =P×[(1+10020)2−1]
CI =P×[(1.2)2−1]
CI =P×[1.44−1]
CI =0.44P
The difference between CI and SI is given as ₹64:
CI - SI =64
0.44P−0.4P=64
0.04P=64
P=0.0464
P=64×25
P=1600
Therefore, the sum is ₹1600.