Multiple choice

If the compound interest on a certain sum for 2 years at 12% per annum is Rs. 1537, then what would be the simple interest on the same amount for 2 years at 12% per annum?

  1. Rs. 1500

  2. Rs. 1800

  3. Rs. 1450

  4. Rs. 2000

  5. Rs. 1900
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For 2 years at 12%, CI = P * ((1.12)^2 - 1) = P * 0.2544 = 1537. P = 1537 / 0.2544 = 6041.6. SI = P * 0.12 * 2 = P * 0.24 = 6041.6 * 0.24 = 1450.

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