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