1) If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50. What is the compound interest on the same sum at the same rate and for the same time ? A) Rs. 60 B) Rs. 54.25 C) Rs. 52 D) Rs. 51.25 E) Rs. 53.25 Answer: Option DExplanation:Difference in $C.I.$ and $S.I.$ $=\frac{Rate\times S.I.}{2\times 100}$ $=\frac{5\times 50}{2\times 100}$ $=1.25$ $C.I.$ $=50+1.25$ = Rs. 51.25.
