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?
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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