The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 615. 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 5% = 5 + 5 + (55)/100 = 10.25%. Simple interest rate = 5 * 2 = 10%. Given 10.25% of sum = 615 => 1% of sum = 60. Simple Interest = 10% of sum = 10 * 60 = Rs. 600.
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