Discussion Forum

The compound interest on a certain sum of money at 5% for 2 years is Rs. 328. The simple interest on that sum at the same rate and for the same period of time will be

Answer:

Explanation:

$C.I$ $=p\left[\left(1+ \frac{R}{100}\right)^{T}-1\right]$

$\Rightarrow p\left[\left(1+ \frac{5}{100}\right)^{2}-1\right]$

$\Rightarrow 328$ $=p\left(\frac{441}{400}-1\right)$

$\Rightarrow 328$ $=p\left(\frac{41}{100}\right)$

$\Rightarrow p$ $=\frac{328 \times 400}{41}$ $=3200$

$SI$ $=\frac{PRT}{100}$ $=\frac{3200\times 5\times 2}{100}$ = Rs. 320.