A sum amounts of Rs. 9261 in 3 years at 5% per annum, interest compounded annually. What is the simple interest (in Rs.) on the same sum for 3 years at the same rate of interest?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs. 1500.
We have given,
A = 9261
r = 5%
n = 3 years
A = P{(1 + r/100)}n
9261 = P(1 + 5/100)3
9261 = P (21/20)3
P = 8000
For 3 years simple interest
SI = PRT/100
SI = (8000 × 5 × 15)/(4 × 100)
SI = Rs 1500