If the difference between the compound… - CUET UG 2025 General Test PYQ

CUET UG 2025 — General Test Arithmetic

2025mcqmedium

If the difference between the compound and simple interests on a certain sum of money for 2 years at 20% per annum is ₹ 64, then the sum in ₹ will be:

Official previous-year question

Held on 26 May 2025 · Verified 13 Jul 2026.

Options

A
800
B
1200
C
640
D
1600

Did you get this right?

Solution

Let the principal be $P$ .

Time = 2 years

Rate = 20% per annum

Simple Interest formula: SI = $\dfrac{P \times R \times T}{100}$

SI $= \dfrac{P \times 20 \times 2}{100}$

SI $= \dfrac{40P}{100}$

SI $= 0.4P$

Compound Interest formula: CI = $P \times [(1 + \dfrac{R}{100})^n - 1]$

CI $= P \times [(1 + \dfrac{20}{100})^2 - 1]$

CI $= P \times [(1.2)^2 - 1]$

CI $= P \times [1.44 - 1]$

CI $= 0.44P$

The difference between CI and SI is given as ₹64:

CI - SI $= 64$

$0.44P - 0.4P = 64$

$0.04P = 64$

$P = \dfrac{64}{0.04}$

$P = 64 \times 25$

$P = 1600$

Therefore, the sum is ₹1600.

Your note

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