Raghu invested some money in HDFC at 4% per annum rate of interest. What would be the corresponding simple interest (in ₹) if after 2 years, Raghu got ₹102 as compound interest, considering annual compounding?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 100.
1st year : 2nd year
50 50
50 × 4/100 = 2
So, simple interest for 2 years = 50 + 50 = 100