If the compound interest on a certain sum for 2 years at 4% per annum is Rs. 102, find the simple interest on the same sum at the same rate for the same period. MCQ with Answer and Explanation
If the compound interest on a certain sum for 2 years at 4% per annum is Rs. 102, find the simple interest on the same sum at the same rate for the same period.
A. Rs. 101
B. Rs. 101.50
C. Rs. 98
D. Rs. 100
Answer: Option D
Solution (By JKSSB Mock Tests)
Effective rate of compound interest for 2 years at 4% = 4 + 4 + (44)/100 = 8.16%. Simple interest rate = 4 * 2 = 8%. Given 8.16% of sum = 102, then 8% of sum = (102 / 8.16) * 8 = 12.5 * 8 = Rs. 100.
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