Simple interest on a certain sum of money for 5 years at 5% per annum is half the compound interest

A. Rs. 1550

B. Rs. 1650

C. Rs. 1750

D. Rs. 2000

E. None of these

Solution(By Examveda Team)

$$\eqalign{ & {\text{C}}{\text{.I}}{\text{.}}\, = Rs.\,\left[ {4000 \times {{\left( {1 + \frac{{10}}{{100}}} \right)}^2} - 4000} \right] \cr & \,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,\left( {4000 \times \frac{{11}}{{10}} \times \frac{{11}}{{10}} - 4000} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,840 \cr & \therefore {\text{Sum}} = Rs.\,\left( {\frac{{420 \times 100}}{{3 \times 8}}} \right) \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,1750 \cr} $$

Solution

S.I=P×r×t100A=P(1+r100)tC.I=AP

Where,

C. I = Compound interest

S.I = Simple interest

A = Amount

P = Principal

r = rate %

t = time in years

Given, compound interest on a certain sum of money at 5% per annum for 2 years is Rs. 246.

∴ r = 5%

t = 2 years

C.I = Rs. 246

P = ?

A = C.I + P

⇒ A = P + 246

therefore,

P+246=P(1+5100)2P+246=P×1.052246=1.1025PP246=0.1025PP=2400

Now, S.I on the same sum for 3 years at 6% per annum.

∴ r = 6%

t = 3 years

S.I=(2400×6×3)100S.I=Rs.432

The simple interest on the same sum for 3 years at 6% per annum is Rs. 432