The compound interest accrued on an amount of Rs.44000 at the end of two years is Rs.1193.60. What would be the simple interest accrued on the same amount at the same rate in the same period?

Compound Interest 21/09/2021

A. Rs.10,840
B. Rs.10,720
C. Rs.10,560
D. Rs.10,280
E. None of these.

Explanation:

Let the rate of interest be R% p.a.

4400{[1 + R/100]2 – 1} = 11193.60
[1 + R/100]2 = (44000 + 11193.60)/44000
[1 + R/100]2 = 1 + 2544/1000 = 1 + 159/625
[1 + R/100]2 = 784/625 = (28/25)2
1 + R/100 = 28/25
R/100 = 3/25
Therefore R = 12 SI on Rs.44000 at 12% p.a. for two years = 44000(2)(12)/100
=Rs.10560

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