If the compound interest on a certain sum for 2 years at

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If the compound interest on a certain sum for 2 years at 12.5% per annum is 170, the simple interest is ?

1. Rs. 150
2. Rs. 152.50
3. Rs. 160
4. Rs. 162.50

Correct Option: C

Let the principle is P
so compound interest = p x ( 1 + (12.5/100))sup>2 - p = 170
⇒ p x (112.5/100) x (112.5/100) - p = 170
⇒ P [ 12656.25 - 10000 ] = 170 x 10000
∴ p = (170 x 10000) / 2656.25

Simple interest SI = (P x T x R )/100
= [{(170 x 10000) / 2656.25} x 2 x 12.5] / 100
= 160