At a rate of 10% per year, the compound interest on a specific money for two years is Rs. 525. The simple interest on the same money over double the period at half the annual rate is:
A. Rs. 400
B. Rs. 500
C. Rs. 600
D. Rs. 800
Answer:B
At a rate of 10% per year, the compound interest on a specific money for two years is Rs. 525. The simple interest on the same money over double the period at half the annual rate is:
A. Rs. 400 B. Rs. 500 C. Rs. 600 D. Rs. 800
Explanation: Let's say the amount is Rs. P.P (1 +10/100 to the power 2) - P = 525 =P (11/10 to the power 2) - 1 = 525 P =525 x 100/21 =2500 rupees is the whole amount. As a result, S.I. equals Rs. 2500 x 5 x 4/100 = Rs. 500.