The compound interest on a certain some of money for 2 years at 10% p…

Question

The compound interest on a certain some of money for 2 years at 10% per annum is Rs 420. The simple interest on the same sum at the same rate and for the same time will be ?

Accepted Answer

Option D. Rs. 400. Answer & Solution Answer: Option D Solution: & Rate = 10\% & Time = 2 years & Effective rate of CI for 2 years & = 10 + 10 + 10 × 10100 & = 21\% & Effective rate of SI for 2 years & = 2 × 10 = 20\% & Required SI & = 42021 × 20 = Rs. 400