If the compound interest on a sum for 2 years at `12(1)/2%` per annum is `Rs. 510`, the simple interest on the same sum at the same rate for the same period of time is :

Options

A. 400
B. 480
C. 450
D. 460

Answer

B

Explanation

`C. I. = P { ( 1 + (r)/ (100) )^(t) - 1 }`
`rArr 510 = P { ( 1 + ( 25)/( 200) )^2 - 1 }`
`rArr 510 = P { ((9)/(8))^2 - 1}`
`rArr 510 = P xx (17)/(64)`
`therefore P = 64 xx 30 = Rs. 1920`
अब,
`SI = ( 1920 xx 25 xx 2)/( 100 xx 2)`
`therefore SI = Rs. 480`