Question

The compound interest for a certain sum 5% p.a. for first year is Rs. 25. The S-I for the same
money @ 5% p.a. for 2 years will be.
(a) Rs. 40
(b) Rs. 50
Rs. 60
(d) Rs. 70
SSE​

Answer 1

⇒  We have, R=5,%T=1year and C.I.=Rs,2525

⇒  CompoundInterest=A−P

⇒  CompoundInterest=P(1+100R​)T−P

⇒   25=P(1+1005​)1−P

⇒   25=P(2021​−1)

⇒   P=Rs.500

⇒  Now, we have to find simple interest for 2 years using same money.

⇒  S.I=100P×R×T​

⇒  S.I=100500×5×2​

∴      S.I.=Rs.50