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The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525 . The simple interest on the same sum for double the time at half the rate percent per annum is :
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- Rs. 520
- Rs. 550
- Rs. 500
- Rs. 515
Correct Option: C
Given that , C.I. = Rs. 525 , Time = 2 years , Rate = 10%
Using the given formula ,
C.I. = P | 1 + | T | − 1 | |||||
100 |
⇒ 525 = P | 1 + | 2 | − 1 | |||||
100 |
⇒ 525 = P | − 1 | |||
100 |
⇒ 525 = | |
100 |
⇒ P = | = Rs. 2500 | |
21 |
Again, new rate = 5% per annum
∴ S.I. = | |
100 |
S.I. = | = Rs. 500 | |
100 |