Yogesh invested some money in HDFC at 4% per annum rate of interest. What would be the corresponding simple interest (in ₹) if after 2 years, Yogesh got ₹229.5 as compound interest, considering annual compounding?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 225.
CI = p{(1 + r/100)n - 1}
⇒ 229.5 = p{(1 + 4/100)2 - 1}
⇒ 229.5 = p{(26/25)2 - 1}
⇒ 229.5 = p{676/625) - 1}
⇒ 229.5 = p{676 - 625)/625}
⇒ 229.5 = p{51)/625}
P = 2812.5
SI = PRT/100
SI = (2812.5 × 4 × 2)/100 = 225