Question

The compound interest on a certain sum of money invested for 2 years at 5% per annum
is 328. What will be the simple interest on the same sum, at the same rate and for the
same period?
(1) 240
(2) 320
(3) 430
(4) 290​

Answer 1

328=P(1+R/100)^2-P

328=(441P/400)-P

328=0.1025P

P=₹3200

Simple interest=(3200×5×2)/190=₹320