If the compound interest on a sum for 2 yr at 12.5% per anum
If the compound interest on a sum for 2 yr at 12.5% per annum is Rs.510, the simple interest on the same sum at the same rate for the same period of time is
Correct answer is: Rs.480
Explanation: Let's recalculate the answer. We have: - Compound Interest (CI) = Rs. 510 - Time period (T) = 2 years - Rate of interest (R) = 12.5% To find the principal amount (P), we'll use the formula for compound interest: \[CI = P \left(1 + \frac{R}{100}\right)^T - P\] Substituting the given values: \[510 = P \left(1 + \frac{12.5}{100}\right)^2 - P\] Let's first calculate \(\left(1 + \frac{12.5}{100}\right)^2\): \[\left(1 + \frac{12.5}{100}\right)^2 = \left(1.125\right)^2 = 1.265625\] So, the equation becomes: \[510 = P \times 1.265625 - P\] \[510 = 1.265625P - P\] \[510 = 0.265625P\] Now, divide both sides by \(0.265625\) to find \(P\): \[P = \frac{510}{0.265625}\] \[P ≈ 1919.047619\] Now that we have the principal amount (\(P\)), let's calculate the simple interest (SI) using the formula: \[SI = P \times R \times T\] Substituting the values of \(P\), \(R\), and \(T\): \[SI = 1919.047619 \times \frac{12.5}{100} \times 2\] \[SI ≈ 479.7619\] Rounding to the nearest rupee, the simple interest is approximately Rs. 480. Therefore, the correct answer is option B. Rs. 480. Thank you for your patience, and I apologize for any confusion caused.
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