The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs 1. Find the sum Select the correct option:
A) rs 600
B) rs 625
C) rs 650
D) rs 675
E) none of these

Rationale: explanation : let the sum be p s . i . = p ∗ 4 ∗ 2 / 100 = 2 p / 25 c . i . = p ( 1 + 4 / 100 ) 2 − p = 676 p / 625 − p = 51 p / 625 as , c . i . - s . i = 1 = > 51 p / 625 − 2 p / 25 = 1 = > 51 p − 50 p / 625 = 1 p = 625 option b
Answer: B