The compound interest on a certain sum for 2 years at 5% per annum, compounded annually, is ₹410. Find the simple interest on the same sum for the same period and rate (in ₹).

Question

Accepted Answer

400. CI = P((1.05)^2 − 1) = 0.1025P = 410, so P = 4000. SI = 4000 × 5 × 2 / 100 = 400.

The compound interest on a certain sum for 2 years at 5% per annum, compounded annually, is ₹410. Find the simple interest on the same sum for the same period and rate (in ₹).

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