Question

21.
Compound interest of a sum of money for 2 years
at 4% per annum is * 2,448. Simple interest of the
same sum of money at the same rate of interest for
2 years will be
(a) *2,500 (b) 2,400 (c) 2,360
(d) ₹2,250 (e) None of these

Answer 1

Option (b) ₹2400.

Step-by-step explanation:

Let the simple interest for 2 years be ₹2x.

Since compound interest (CI) for 1st year = simple interest (SI) for 1st year.

Therefore, CI for 1st year = SI for 1st year = ₹x.

Now, CI for 2nd year = CI of 1st year + interest of (CI of 1st year )

=> x + (x × 4 × 1)/100

=> x + x/25

=> 26x/25.

CI in 2 years = CI for 1st year + CI for 2nd year.

=> 2448 = x + 26x/25

=> 51x/25 = 2448

=> x = 2448 × (25/51)

=> x = 48 × 25

=> x = 1200

=> 2x = ₹ 2400.

Hence, the simple interest for 2 years = ₹ 2400.

Thus, option (b) is correct.