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The compound interest on a certain amount for 2 years at the rate of 8 p.c.p.a. is Rs. 312. What will be the simple interest on the same amount and at the same rate and same time ?
- ARs. 300
- BRs. 400
- CRs. 500
- DRs. 600
Correct answer: A
Discussion 1
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CCommunity
Rs. 300
C.I. = P [(1 + R/100)T -1]
= 312 = P [(1 + 8/100)² -1]
= 312 = P (729/625 - 1)
= 312 = P (729 - 625/625)
= P = 312 x 625/104 = Rs. 1875
∴ SI = Principal x Time x Rate/100
= 1875 x 2 x 8/100 = Rs. 300
C.I. = P [(1 + R/100)T -1]
= 312 = P [(1 + 8/100)² -1]
= 312 = P (729/625 - 1)
= 312 = P (729 - 625/625)
= P = 312 x 625/104 = Rs. 1875
∴ SI = Principal x Time x Rate/100
= 1875 x 2 x 8/100 = Rs. 300