Question

If the compound interest on a certain sum for 2 years at 3% p.a. is Rs.101.50 then what will be the simple interest on the same sum at the same rate and for the same time?

• A. Rs. 100
• B. Rs. 98
• C. Rs. 97
• D. Rs. 99

Answer 1

The correct option is A Rs. 100

Let the principal be Rs.P Then

$101.50=P[{(1+\frac{3}{100})}^2-1]=P[{\left(\frac{103}{100}\right)}^2-1]$

$\Rightarrow 101.50=P\left[\frac{(103{)}^2-(100{)}^2}{1000}\right]=P\left[\frac{(103+100)(103-100)}{10000}\right]$

$\Rightarrow P=\frac{101.50\times 10000}{203\times 3}=Rs.\frac{5000}{3}$

$\therefore S.I.=\frac{5000\times 3\times 2}{3\times 100}=Rs.100$