The compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 1050. What would be the simple interest on the same sum at the same rate for the same time?
Explanation:
Effective rate of compound interest for 2 years at 10% = 10 + 10 + (1010)/100 = 21%. Simple interest rate = 10 * 2 = 20%. Given 21% of sum = 1050 => 1% of sum = 50. Simple Interest = 20% of sum = 20 * 50 = Rs. 1000.
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