Multiple choice

The compound interest on a certain sum for $1$ year at $5\%$ per annum is Rs. $ 1680$, find the simple interest on the same sum for $1$ years at $5\%$ per annum

  1. Rs. $800$
  2. Rs. $1810$
  3. Rs. $1680$
  4. Rs. $1560$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For 1 year, CI and SI are the same because there is no compounding period that has elapsed.

AI explanation

For a period of 1 year, the calculation for compound interest and simple interest is identical because there is no interest earned on previous interest. Therefore, if the compound interest is 1680, the simple interest on the same sum for the same period is also 1680.

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