1.

Compound interest on a certain sum for 2 years at the rate of 11% per annum is Rs. 1160.5. What will be the simple interest (in Rs) for the same amount at the same rate of interest for 2 years?1). 90002). 10003). 11004). 1050

Answer»

Let the principle be P.

Compounded AMOUNT = P{1 + (11/100)}2 = 1.2321P

Compound interest = 1.2321P – P = 0.2321P

According to the question,

⇒ 0.2321P = 1160.5

⇒ P = 5000

Now,

∴ Simple interest = (5000 × 11 × 2) /100 = 1100


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