Multiple choice

The compound interest on a certain sum for 3 years at the rate of 5% per annum is Rs. 2522. The simple interest on the same sum for double the time at the half rate percent per annum is

  1. Rs. 600

  2. Rs. 960

  3. Rs. 2400

  4. Rs. 800

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

For 3 years at 5%, the compound interest factor is (1.05)^3 - 1 = 0.157625. Sum = 2522 / 0.157625 = 16000. Simple interest for 6 years at 2.5% is 16000 * 0.025 * 6 = 2400.

AI explanation

This question provides inconsistent data; using the compound interest formula for the first condition, the principal is calculated as 2522 / 0.157625, which equals Rs. 16000. Applying the second condition to this principal, the simple interest is calculated as (16000 * 2.5 * 6) / 100, resulting in Rs. 2400.

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