# The compound interest on a certain sum of money for 2 years at the rate of interest 10% per annum is Rs. 6300. Find the simple interest on the same su

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The compound interest on a certain sum of money for 2 years at the rate of interest 10% per annum is Rs. 6300. Find the simple interest on the same sum at the same rate and for the same time.

1. Rs. 6,000
2. Rs. 6,400
3. Rs. 6,600
4. Rs. 6,800

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Correct Answer - Option 1 : Rs. 6,000

Given:

The amount of compound interest = Rs. 6300

Rate = 10%

Time = 2 years

Concept used:

C.I. = P {(1 + R/100 )– 1}

S.I. = (P × R × T)/100

S.I. → Simple interest

P →  Principal

T → Time

R → Rate%

A → Amount

Calculations:

C.I. = P{(1 + R/100)– 1}

⇒ 6300 = P{(1 + 10/100)– 1}

⇒ 6300 = P × {(11/10) × (11/10) – 1}

⇒ 6300 = P × (21/100)

⇒ P = Rs. 30,000

S.I. = (P × R × T)/100

⇒ (30000 × 10 × 2)/100

⇒ Rs. 6,000

∴ The simple interest is Rs. 6,000