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  1. 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 :
    1. Rs. 520
    2. Rs. 550
    3. Rs. 500
    4. Rs. 515
Correct Option: C

Given that , C.I. = Rs. 525 , Time = 2 years , Rate = 10%
Using the given formula ,

C.I. = P 1 +
R
T − 1
100

⇒  525 = P 1 +
10
2 − 1
100

⇒  525 = P
121
− 1
100

⇒  525 =
P × 21
100

⇒  P =
525 × 100
= Rs. 2500
21

Again, new rate = 5% per annum
∴  S.I. =
Principal × Time × Rate
100

S.I. =
2500 × 5 × 4
= Rs. 500
100



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