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### Discussion :: Compound Interest

1. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

2.  A. Rs. 400 B. Rs. 500 C. Rs. 600 D. Rs. 800

Explanation :

Let the sum be Rs. P.

Then,$$[P(1 +(\frac { 10 } { 100 } ) ^2-P]$$=525

P[$$(\frac { 11 } { 10 } )^2-1]$$=525

P =[$$[\frac {525*100 } { 2 1} ]$$=2500

Sum = Rs . 2500.

So, S.I. = Rs.$$[\frac {2500*5*4} { 100} ]$$=Rs.500

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