The compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 416. What would be the simple interest on the same sum at the same rate for the same time? MCQ with Answer and Explanation
The compound interest on a certain sum of money for 2 years at 8% per annum is Rs. 416. What would be the simple interest on the same sum at the same rate for the same time?
A. Rs. 410
B. Rs. 400
C. Rs. 380
D. Rs. 412
Answer: Option B
Solution (By JKSSB Mock Tests)
Effective rate of compound interest for 2 years at 8% = 8 + 8 + (88)/100 = 16.64%. Simple interest rate = 8 * 2 = 16%. Given 16.64% of sum = 416 => 1% of sum = 25. Simple Interest = 16% of sum = 16 * 25 = Rs. 400.
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