Question 72

A sum of ₹9500 amounts to ₹11495 in 2 years at a certain rate percent per annum, interest compounded yearly. What is the simple interest (in ₹) on the same sum for the same time and double the rate?

Solution

Let the rate of interest = R

11495 = 9500(1+$$\frac{R}{100}$$)$$^2$$

(1+$$\frac{R}{100}$$)$$^2$$ = $$\frac{11495}{9500}$$

(1+$$\frac{R}{100}$$)$$^2$$ = $$\frac{121}{100}$$

1+$$\frac{R}{100}$$ = $$\frac{11}{10}$$

$$\frac{R}{100}$$ = $$\frac{1}{10}$$

R = 10%

Simple interest = $$\frac{9500\times2\times20}{100}$$

= ₹3800

Hence, the correct answer is Option D

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