The simple interest on a certain sum of money for 2 years at the rate of 6%…
2020
The simple interest on a certain sum of money for 2 years at the rate of 6% per annum comes to ₹300. The compound interest at the same rate, for the same time and on the same sum of money would be:
- A.
₹ 310
- B.
₹ 308
- C.
₹ 307
- D.
₹ 309
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Correct answer: D
First find the principal using simple interest: SI = (P × R × T)/100. Given SI = 300, R = 6 and T = 2, so 300 = (P × 6 × 2)/100 = 0.12P. Hence P = 2500. Now calculate compound interest for 2 years at 6%: Amount = 2500 × (1.06)^2 = 2500 × 1.1236 = 2809. Compound interest = Amount - Principal = 2809 - 2500 = ₹309.