If the simple interest for 2 years is Rs. 500 at 10% rate of interest. Find…
2025
If the simple interest for 2 years is Rs. 500 at 10% rate of interest. Find the compound interest for the same time.
Answer: A. Rs. 525 — Key facts: Time = 2 years; Simple interest = Rs. 500; Rate = 10%. Find the principal from the simple interest formula: SI = (P × R × T)/100. 500 = (P × 10 ×…
- A.
Rs. 525
- B.
Rs. 500
- C.
Rs. 200
- D.
Rs. 600
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Correct answer: A
Key facts: Time = 2 years; Simple interest = Rs. 500; Rate = 10%.
Find the principal from the simple interest formula: SI = (P × R × T)/100.
500 = (P × 10 × 2)/100 → 500 = (20P)/100 → 500 = 0.2P → P = 500/0.2 = Rs. 2500.
Compute the compound amount after 2 years: A = P × (1 + R/100)^t.
A = 2500 × (1 + 0.10)^2 = 2500 × 1.21 = 3025.
Compound interest = Amount − Principal = 3025 − 2500 = Rs. 525.
Final answer: The compound interest for 2 years at 10% is Rs. 525.