Question : If the compound interest on a certain sum for 2 years at 4% per annum is Rs. 102, the simple interest on the same rate of interest for two years would be:
Option 1: Rs. 200
Option 2: Rs. 50
Option 3: Rs. 150
Option 4: Rs. 100

Question

Question : If the compound interest on a certain sum for 2 years at 4% per annum is Rs. 102, the simple interest on the same rate of interest for two years would be:

Option 1: Rs. 200

Option 2: Rs. 50

Option 3: Rs. 150

Option 4: Rs. 100

Team Careers360 · Accepted Answer

Correct Answer: Rs. 100

Solution : Given:
Compound Interest = Rs. 102
Rate = 4% per annum
Time = 2 years
When compounded annually, Compound interest $CI= P(1+\frac{R}{100})^{T}-P$, where $A$ is the total amount, $P$ is the principal amount, $R$ is the rate of interest per annum and $T$ is the time in years.
So, $102=P(1+\frac{4}{100})^{2} - P$
⇒ $102=P(\frac{26}{25})^{2} - P$
⇒ $102=P[(\frac{26}{25})^{2}-1]$
⇒ $102=P[\frac{676-625}{625}]$
⇒ $102×625=51P$
$ herefore P=1250$
Required simple Interest $=\frac{ ext{Principal × Rate × Time}}{100} = \frac{1250 imes 4 imes 2}{100} = 100$
Hence, the correct answer is Rs. 100.

Exams

Colleges

Predictors

Resources

Quick links

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Question : If the compound interest on a certain sum for 2 years at 4% per annum is Rs. 102, the simple interest on the same rate of interest for two years would be:Option 1: Rs. 200Option 2: Rs. 50Option 3: Rs. 150Option 4: Rs. 100

Related Questions

Know More about

Upcoming Exams

Trending Articles around SSC MTS

Download the Careers360 App on your Android phone

Sign In/Sign Up

Question : If the compound interest on a certain sum for 2 years at 4% per annum is Rs. 102, the simple interest on the same rate of interest for two years would be:
Option 1: Rs. 200
Option 2: Rs. 50
Option 3: Rs. 150
Option 4: Rs. 100