On what sum of money will the difference between simple interest and compound interest for 2 years at 5% per annum be equal to 63?

Let the principal amount be P

Given,

Rate of interest (R) = 5%

Time = 2 years

Difference between simple interest and compound interest for 2 years = 63

we know that difference between simple interest and compund interest for 2 years = $$P\left(\frac{R}{100}\right)^2$$

$$=$$>  $$P\left(\frac{R}{100}\right)^2=63$$

$$=$$>  $$P\left(\frac{5}{100}\right)^2=63$$

$$=$$>  $$P\left(\frac{1}{20}\right)^2=63$$

$$=$$>  $$P=63\times20\times20$$

$$=$$>  $$P=25200$$

$$\therefore\ $$Principal amount = Rs. 25,200

Hence, the correct answer is Option A