Multiple choice

If the compound interest on a certain sum for two years at 15% per annum is Rs.1,548, the simple interest on it at the same rate for two years will be ?

  1. 1200

  2. 1250

  3. 1500

  4. 1440

  5. None
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

CI = P((1 + r/100)^n - 1). 1548 = P((1.15)^2 - 1) = P(1.3225 - 1) = P(0.3225). P = 1548 / 0.3225 = 4800. SI = P * r * t / 100 = 4800 * 0.15 * 2 = 1440.

AI explanation

Using the relation between simple interest and compound interest for two years, the simple interest is calculated as (1548 * 200) / (215). This simplifies to 3096000 / 215, resulting in Rs. 1440.

Keep practicing — related questions