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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:

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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:

[A]. Rs. 400
[B]. Rs. 500
[C]. Rs. 600
[D]. Rs. 800

Answer: Option B

Explanation:

Let the sum be Rs. P.

Then, 1-sym-obracket-h1 P 1-sym-oparen-h1 1 + 10 1-sym-cparen-h1 2 - P 1-sym-cbracket-h1 = 525
100
P 1-sym-obracket-h1 1-sym-oparen-h1 11 1-sym-cparen-h1 2 - 1 1-sym-cbracket-h1 = 525
10
 P = 1-sym-oparen-h1 525 x 100 1-sym-cparen-h1 = 2500.
21

 Sum = Rs . 2500.

So, S.I. = Rs. 1-sym-oparen-h1 2500 x 5 x 4 1-sym-cparen-h1 = Rs. 500
100
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