# Simple interest on a certain sum of money for 3 years at 8% per annum

| Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 8000 for 2 years at 5% per annum. The sum placed on simple interest is:

A. Rs. 2208.49

B. Rs. 1708.33

C. Rs. 2441.50

D. Rs. 2838.42

### Right Answer is: B

#### SOLUTION

Let the sum placed on simple interest be P

Compound interest on the sum of Rs. 8000 for 2 years @ 5% p.a =

= 8000(1 + 5/100)^{2} – 8000 = 8820 – 8000 = Rs. 820

Now, according to the question

Simple interest on P = P x 8 x 3/100 = 820/2

P =Rs. 1708.33

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Simple interest on a certain sum of money for 3 years at 8% per annum