Choose the correct option. Compound interest for a certain amount at 13% p.a. for 2 years exceeds the interest on the same amount at 12% p.a. for 2 years by Rs. 225. The principal amount is: Options Rs. 20, 000 Rs. 15, 000 Rs. 22, 500 Rs. 25, 000 Rs. 10, 000

The question is asking for the principal amount given that the difference in compound interest at 13% per annum and 12% per annum for 2 years is Rs. 225.

The formula for compound interest is A = P(1 + r/n)^(nt), where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

In this case, we know that the difference in compound interest at 13% and 12% for 2 years is Rs. 225. This can be written as:

P(1 + 13/100)^2 - P(1 + 12/100)^2 = 225

Solving this equation for P will give us the principal amount.

Let's simplify the equation:

P[(1.13)^2 - (1.12)^2] = 225 P[1.2769 - 1.2544] = 225 P[0.0225] = 225

Dividing both sides by 0.0225, we get:

P = 225 / 0.0225 P = Rs. 10,000

So, the correct option is Rs. 10,000.