Multiple choice

If the compound interest on a certain sum for 2 years at 3% is Rs. 101.50, what would be the simple interest at the same rate of interest for 2 years?

  1. Rs. 101

  2. Rs. 100

  3. Rs. 95

  4. Rs. 90

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

CI = P((1+r/100)^n - 1). 101.50 = P((1.03)^2 - 1) = P(1.0609 - 1) = P(0.0609). P = 101.50 / 0.0609 = 1666.67. SI = P * r * t / 100 = 1666.67 * 3 * 2 / 100 = 100.

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