The compound interest on a certain sum at 
p.a. for 3 years is Rs.6,350. What will be the simple interest on the same sum at the same rate for 
years?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e Rs.10,200
| Understanding | Application |
| We will use concepts of compound interest and simple interest in the following question. |
⇒ CI = P(1 + R / 100)n - P ⇒ 6350 = P(1 + 50 / 300)3 - P ⇒ P= 6350 × 216 / 127 ⇒ P = 10800 We know that, SI = P × r × t / 100 ⇒ SI = 10800 × (50 / 3) × (17 / 3) / 100 ⇒ Rs. 10200
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