The compound interest (compounded annually) on a sum for 2 years at 12% per annum exceeds the simple interest by ₹72. What is the sum?

Explanation

1. 01

   $P\left(\frac{12}{100}\right)^2 = 72$, so $P \times 0.0144 = 72$.

2. 02

   $P = \frac{72}{0.0144} = 5000$, so the sum is ₹5,000.