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  1. The compound interest on a certain sum of money for 2 years at 5% per annum is ₹ 410. The simple interest on the same sum at the same rate and for the same time is
    1. ₹ 400
    2. ₹ 300
    3. ₹ 350
    4. ₹ 405
Correct Option: A

Here , Compound Interest ( CI ) = ₹ 410 , Rate ( R ) = 5% , Time = 2 years

Compound interest = P 1 +
R
T − 1
100

⇒  410 = P 1 +
5
2 − 1
100

⇒  410 = P 1 +
1
2 − 1
20

⇒  410 = P
21
2 − 1
20

⇒  410 = P
441
− 1
400

⇒ 410 = P
41
400

⇒  P =
410 × 400
= ₹ 4000
41

∴  S.I.=
Principal × Time × Rate
100

S.I. =
4000 × 2 × 5
= ₹ 400
100

We can find required answer with the help of given formula :
Here, C.I. = Rs. 410 , R = 5% , S.I. = ?
C.I.= S.I.1 +
R
200

410 = S.I.1 +
5
200

410 = S.I.
205
200

S.I. =
410 × 200
= Rs.400
205



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