Question

If the compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

• A. Rs.400
• B. Rs.500
• C. Rs.600
• D. Rs.700
• E. Rs.800

Answer 1

The correct option is B

Rs.500

Let the sum be P

$P{(1+\frac{10}{100})}^2-P=525$

$P=2500$

$S.I.=\frac{2500\times 5\times 4}{100}$

$=Rs.500$