Multiple choice

If the compound interest on a certain sum of money at 4% p.a. for 2 years is Rs. 210, what could be the simple interest on the same sum for 2 years at 8% p.a?

  1. Rs. 41.176

  2. Rs. 102.94

  3. Rs. 205.88

  4. Rs. 411.76

  5. Rs. 2,573.53
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

CI for 2 years at 4% = P * (1.04^2 - 1) = 0.0816P = 210. P = 210 / 0.0816 = 2573.53. SI for 2 years at 8% = P * 0.08 * 2 = 2573.53 * 0.16 = 411.76.

AI explanation

Using the Compound Interest formula, let the sum be P, so P multiplied by (1.04 squared minus 1) equals 210, which gives P as 210 divided by 0.0816, equaling Rs. 2573.53. Applying the Simple Interest formula to this sum for 2 years at 8 percent, the interest is 2573.53 times 8 times 2 divided by 100. This calculation yields Rs. 411.76.

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