Question

The CI on a certain sum for $2$ years at $10\%$ per annum is Rs. $525$. The SI 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. $800$

Answer 1

Answer: (B)

Rs. $500$

C.I $=$ Rs. $525$, $T=2$ years, $R=10\%$, $P=?$

$P[{(1+\frac{10}{100})}^2-1]=525$
$P\times \frac{21}{100}=525$
$\Rightarrow P=$ Rs. $2500$

For S.I according to the question,

$P=Rs.2500$, $R=5\%$, $T=4$ years

SI $=\frac{2500\times 4\times 5}{100}=$ Rs. $500$