If the compound interest on a certain sum for 2 years at 4% p.a. is ₹102, the simple interest at the same rate of interest for two years would be:
- A.₹200
- B.₹50
- C.₹150
- D.₹100
Explanation
Diff between CI and SI for 2 years = P × (R/100)² = P × 0.0016. SI = 102 − Diff. P × 0.0816 = 102 → P = 1250. SI = 1250 × 0.04 × 2 = ₹100.