Arithmetichard · Past Paper

If the compound interest on a sum for 2 years at 12.5% p.a. is Rs 510, find the simple interest on the same sum at the same rate for the same period.

ARs 400
BRs 450
CRs 480
DRs 500

✓ Correct Answer: CRs 480

12.5% = 1/8. CI = P[(9/8)^2 - 1] = P[17/64]. 510 = 17P/64 => P = 1920. SI = (1920 * 2 * 12.5)/100 = 480.

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