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If the simple interest on a certain sum ...

If the simple interest on a certain sum of money for 3 yrs at 5% is Rs 150, find the corresponding CI.
(a)157.625
(b)190
(c)200
(d)153.5

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The correct Answer is:
To solve the problem of finding the corresponding compound interest (CI) given the simple interest (SI) for a certain sum of money, we can follow these steps: ### Step 1: Understand the Given Information We are given: - Simple Interest (SI) = Rs. 150 - Rate of Interest (R) = 5% - Time (T) = 3 years ### Step 2: Use the Simple Interest Formula to Find Principal (P) The formula for Simple Interest is: \[ SI = \frac{P \times R \times T}{100} \] Substituting the known values: \[ 150 = \frac{P \times 5 \times 3}{100} \] ### Step 3: Rearrange the Formula to Solve for Principal (P) Rearranging the equation gives us: \[ 150 = \frac{15P}{100} \] Multiplying both sides by 100: \[ 15000 = 15P \] Now, divide both sides by 15: \[ P = \frac{15000}{15} = 1000 \] ### Step 4: Calculate Compound Interest (CI) To find the CI, we can use the formula: \[ CI = P \left(1 + \frac{R}{100}\right)^T - P \] Substituting the values we found: \[ CI = 1000 \left(1 + \frac{5}{100}\right)^3 - 1000 \] This simplifies to: \[ CI = 1000 \left(1.05\right)^3 - 1000 \] ### Step 5: Calculate \( (1.05)^3 \) Calculating \( (1.05)^3 \): \[ (1.05)^3 = 1.157625 \] Now substituting back into the CI formula: \[ CI = 1000 \times 1.157625 - 1000 \] \[ CI = 1157.625 - 1000 = 157.625 \] ### Step 6: Final Answer Thus, the corresponding compound interest (CI) is: \[ \text{CI} = Rs. 157.625 \] ### Conclusion The correct answer is (a) 157.625. ---
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