Identify Given Data

Note down the time period $t = 2$ years, rate of interest $r = 10\%$, and the difference between compound interest and simple interest $D = 150$.

$t = 2, \quad r = 10, \quad D = 150$

Apply the 2-Year Difference Formula

The formula for the difference between CI and SI for 2 years is given by $D = \frac{P \cdot r^2}{100^2}$.

$D = \frac{P \times r^2}{100^2}$

Calculate the Principal Sum

Substitute the values into the formula: $150 = \frac{P \times 10^2}{100^2}$, which simplifies to $150 = \frac{P}{100}$, yielding $P = 15000$.

$P = 150 \times 100 = 15000$