Question

The compound Interest on a certain sum of
money at 5% per annum for 2 years Rs. 328.
Calculate the Simple Interest on the same sum for a
4 years at 7% per annum.
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Answer 1

Answer:

Let the sum be 100x

First year interest = 5x

Second year interest is 5x + 5x*5/100= 5.25x

Total interest = 10.25x

If interest is 10.25x , principal = 100x

If interest is Rs328 , principal = 328/10.25x *100x = 32800/10.25 = Rs3200

Simple interest on Rs 3200 for 2 years at 5% = Rs 320