Question

# The compound interest on a certain sum of the money at 5%per annum for 2 years is Rs. 328. What will be simple interest on the same amount for the same period and at same rate of interest?

A

Rs. 320

B

Rs. 380

C

Rs. 420

D

Rs. 440

Solution

## The correct option is D Rs. 320 Let the principal be Rs. 100 R = 5% and time = 2 years S.I= PTR100 = (100×2×5)100 = Rs.10 Compound interest= p(1+R100)n−p = 100(1+5100)2−100 = (100×2120×2120)−100 = 4414−100 = Rs.414 Now, if C.I is Rs.414,simple interest=Rs. 10 If C.I is Rs. 328, simple interest = Rs. {(10×4)41}×328 = Rs. 320 Mathematics

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