Question

. If the compound interest on a certain sum for 2 years
is 21. What could be the simple interest?
(a) 20
(b) 16
(C) 18
(d) 20.5
Need explanation?

Answer 1

Answer:

Compound interest at rate r for 2 years accumulates to: (1+r)

2

=1.21

⇒ r=10%.

At r=10%,

Simple interest in 2 years accumulates to 2×(10%)=0.20,

∴ Simple Interest = Rs 20

Answer 2

Answer:

a) 20

Step-by-step explanation:

Compound interest at rate r for 2 years accumulates to: (1+r) ^2 = 1.21

⇒ r=10%.

Simple interest in 2 years accumulates to 2×(10%)=0.20,

∴ Simple Interest = Rs 20

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