Question

The compound interest on a certain sum of money at $5\%$ per annum for two years is ₹246. Calculate the simple interest on the same sum for three years at $6\%$ per annum.

• A. ₹430
• B. ₹432
• C. ₹442
• D. ₹452

Answer 1

The correct option is B

₹432

$\text{We know that,}C.I=P[{(1+\frac{r}{100})}^n-1]\text{where P is the principal, r is the rate}\text{of interest and t is the time period.}$

$\text{Hence,}246=P[{(1+\frac{5}{100})}^2-1]$

$246=P[\left(\frac{21}{20}\right)\times \left(\frac{21}{20}\right)-1]246=P\times \left(\frac{41}{400}\right)$

$\Rightarrow P=\frac{246\times 400}{41}=₹2400$

$\text{Now, P=}₹2400,r=6\%\text{per annum and t =}3\text{years}$

$S.I=\frac{P\times r\times t}{100}=\frac{2400\times 6\times 3}{100}=₹432$