Home » Aptitude » Compound Interest » Question
  1. If the compound interest on a sum for 2 years at 12
    1
    % per annum
    2
    is ₹ 510, the simple interest on the same sum at the same rate for the same period of time is :
    1. ₹ 400
    2. ₹ 480
    3. ₹ 450
    4. ₹ 460
Correct Option: B

Here , Principal ( P ) = ? , Compound Interest ( CI ) = ₹ 510 , Rate ( R ) = ( 25 / 2 )% , Time = 2 years

C.I. = P 1 +
R
T − 1
100

⇒  510 = P 1 +
25
2 − 1
200

⇒  510 = P 1 +
1
2 − 1
8

⇒ 510 = P
81
− 1
64

⇒ 510 = P
81 - 64
64

⇒  P =
510 × 64
= ₹ 1920
17

∴  S.I. =
P × R × T
100

∴   S.I. =
1920 × 2 × 25
= ₹ 480
100 × 2

Second Method to solve this question :
Here, C.I. = ₹ 510 , R = 12
1
%, S.I. = ?
2

With the help of given formula ,
C.I. = S.I.1 +
R
200

510 = S.I.1 +
25
400

510 = S.I.
425
400

S.I. =
510 × 400
= ₹ 480
425



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