A person got Rs. 48 more when he invested a certain sum at compound interest instead of simple interest for two years at 8% p.a. Find the sum?

Rs.8000

Rs.7500

Rs.5500

Rs.5000

Let the principal amount be P.

Simple interest (SI) for 2 years at 8% p.a. = (P x 8 x 2) / 100 = 0.16P

Compound interest (CI) for 2 years at 8% p.a. = P x (1 + 0.08)^2 - P = 0.1664P (approximately)

The difference between CI and SI is Rs. 48, so we can set up the equation:

0.1664P - 0.16P = 48

0.0064P = 48

Now, divide both sides by 0.0064:

P = 48 / 0.0064

P = 7500

So, the principal amount is Rs. 7500.